RISING Gas Prices DESPITE Increased Production; OPEC Cuts & EXTREME Heat To Blame?

The average price for a gallon of gasoline in the U.S. is $3.85. That’s up nearly 30 cents from a month ago. Prices are still lower this year than they were last year due to spikes caused by Russia’s invasion of Ukraine; however, they are at their highest point this year.

Factors influencing the high gasoline prices include oil supply cuts abroad and issues at refineries that turn crude oil into gasoline. According to the American Automobile Association, extreme heat took about 500,000 barrels per day of refining capacity offline. This makes up about 3 percent of the U.S.’s total capacity to make gasoline from oil. Oil prices are a major factor in the price of the gasoline that eventually reaches consumers at the pump. Oil prices have been on the rise over the past month or so along with gasoline prices.

Experts said that production cuts from a group of oil-producing nations known as OPEC+ since October are a major factor in the prices of both oil and gasoline. And while the U.S is producing more oil than it did before the pandemic — a new government forecast says it is expected to produce an average of 12.8 million barrels per day this year, up from 12.2 million in 2019 — they’re not expected to fully offset the cuts in other countries.