Some states could see a drop in gas prices, experts say.
The rise in US gas prices is due to the fact that the US fuel market is suffering from maintenance outages at key regional refining hubs, specifically in California.
The average price for a gallon of gas in the US is $3.89.
Some relief to rising US gas prices will be felt as refinery issues are resolved and Gas Buddy expects gas prices below $3 a gallon to disappear as a result.
Gas Buddy says that even as the lowest gas prices rise in some states, they will fall in others.
"We're going to see many sub-$3/gal #gasprices disappear in the weeks ahead, primarily thanks to OPEC's decision to cut oil production," he said.
The #gasprices in a few regions will go up for now, as a result of the OPEC decision. It's possible that the East Coast, South, Northeast and Rockies could be involved. As refinery issues are addressed, prices will fall on the West Coast, Great Lakes, Plains.
Thanks to Russia's war with Ukraine and Europe's energy crisis, US gas prices have skyrocketed. Three months ago, the price of a gallon of gas was as high as $5.
After the Biden administration began releasing record amounts of crude oil from the Strategic Petroleum Reserve, the price of oil fell. Gas prices are going back up.
US refinery issues on the West Coast have crunched the region's supply, and subsequently elevated California gas prices to $6.39 a gallon as roughly six refineries undergo maintenance or experienced outages, according to theAAA. Weakness in the oil refinery industry has been going on for a long time, with Goldman Sachs highlighting "unprecedented" bottlenecks at oil refineries, where crude oil is converted into gas.
Due to the impact of the coronaviruses, and the inability of the refinery to cope with a rebound in demand for gasoline, there was a rise in the price of gasoline.
Gas Buddy told Insider that prices should fall as refinery problems are fixed and they start to come back online.
California, Great Lakes, Plains wholesale prices will be dropping again today, while the Pacific Northwest remains very elevated for now.
The governor of California is relaxing rules to allow oil refineries to sell more pollution-causing winter-blend gas. The impact of the production cut on the US could be avoided.
The pressure on US President Joe Biden increased as a result of the OPEC+ measure to reduce production. As a result of tighter supply, the White House believes that crude prices will go up and gas prices will go up.
The White House is keeping a close eye on gas prices ahead of the elections. Biden has made them a focus of his administration, and has called on oil companies to cut prices, as well as exploring gas export bans and relaxing sanctions on Venezuela to allow more oil to be pumped there.
De Haan's rationale for the falling gas prices was that the recession could affect crude demand, meaning prices may not see large increases. The price of gas usually goes down during the fall and winter driving seasons.
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