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U.S. Fuel Costs Rising Going Into Labor Day

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U.S. Fuel Costs Rising Going Into Labor Day

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weekly average retail price of regular gasoline, United States

Information supply: U.S. Vitality Info Administration, Gasoline and Diesel Gas Replace, and U.S. Bureau of Labor Statistics (BLS). Observe: Weekly knowledge mirror U.S. common common gasoline retail value for all formulations. Actual value is calculated utilizing Client Worth Index from BLS.


On the Monday earlier than the Labor Day weekend, August 28, 2023, the retail value of normal gasoline averaged $3.81 per gallon (gal) throughout the USA. Over the previous 5 weeks, oil manufacturing cuts by Saudi Arabia, low U.S. gasoline inventories, and introduced refinery upkeep within the Northeast have elevated the common gasoline retail value by 6%, or 22 cents/gal.

In line with our Gasoline and Diesel Gas Replace, after adjusting for inflation (actual phrases), retail gasoline costs going into this Labor Day weekend had been 4%, or 14 cents/gal, decrease than final 12 months.

Latest manufacturing cuts by Saudi Arabia and different OPEC+ members are placing upward stress on crude oil costs (the largest part of the gasoline value). Manufacturing cuts by OPEC+ members in April didn’t have an effect on crude oil costs a lot as a result of issues about slowing financial progress drove expectations that crude oil demand would stay regular or decline. This time, successive rounds of lower bulletins starting in June and up to date knowledge displaying enhancing financial circumstances in the USA are elevating the value of crude oil.

Forward of this Labor Day, Hurricane Idalia is affecting U.S. Gulf Coast manufacturing and pipeline services. Hurricane-induced facility closures can have unsure results on the retail value of gasoline, and the scale of the impression pertains to the period and severity of the closures.

Restricted gasoline provides have additionally contributed to increased gasoline costs. Refinery outages brought on by excessive climate and refinery upkeep initially scheduled for final 12 months have saved U.S. gasoline inventories beneath the earlier five-year common since March 2022. Most just lately, we count on deliberate upkeep for Irving Oil’s refinery (320,000 barrels per day [b/d]) in Saint John, New Brunswick, and Monroe Vitality’s refinery (185,000 b/d) in Coach, Pennsylvania, which can run from mid-September to mid-November, to maintain gasoline provides restricted, particularly within the Northeast. The East Coast is the highest-consuming gasoline market in the USA, however it has comparatively little refinery capability.

weekly average regular retail gasoline prices by region

Information supply: U.S. Vitality Info Administration, Gasoline and Diesel Gas Replace


U.S. gasoline costs range regionally, reflecting native provide and demand circumstances, completely different gasoline specs required by state legal guidelines, and taxes. Regional gasoline costs are often the best on the West Coast as a result of area’s restricted connections with different main refining facilities (together with the Gulf Coast), tight native provide and demand circumstances, and necessities for gasoline specs that make gasoline extra expensive to fabricate. West Coast costs as of August 28 had been $4.88/gal, up 2%, or 10 cents/gal, from the identical time final 12 months. The Rocky Mountains area faces related logistical constraints because the West Coast, though total provide and demand within the area are each decrease. Rocky Mountain gasoline retail costs averaged $3.98/gal, a 1%, or 4 cents/gal, lower over 2022.

The Gulf Coast accounted for 54% of the nation’s complete refining capability as of January 2023, and it produces extra gasoline than it consumes. Because of this, the value of gasoline on the Gulf Coast is usually the bottom in the USA. On August 28, the common retail gasoline value for the Gulf Coast was $3.38/gal, up 1%, or 2 cents, from the identical time final 12 months.

On the East Coast, retail gasoline costs had been $3.64/gal on August 28, down 1%, or 4 cents, in contrast with the identical time final 12 months. Midwest costs decreased 1%, or 4 cents, to $3.68/gal.

Principal contributor: Alex de Keyserling

Article through U.S. EIA’s Right now In Vitality weblog.


 




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