Press Release from AAA
Fireworks in the oil market should lead to higher Independence Day gas prices
ATLANTA, Ga., (June 29, 2018) – The steady discount on gasoline will soon be over. On Wednesday, oil prices soared to their highest point in 3.5 years, restoring upward pressure on prices at the pump.
Crude oil settled at $72.76 per barrel Wednesday afternoon, surpassing the previous 2018-high of $72.24 – established on May 21. This amounts to an increase of $7 per barrel from last week’s low.
“It looks like the fun is over for motorists who have enjoyed a month-long streak of declining gas prices,” said Garrett Townsend, Georgia Public Affairs Director, AAA – The Auto Club Group. “Oil prices returned to a range we saw last month, when gas prices were at their highest of the year. Normally, an oil increase of this magnitude would signal a 20 cent increase in gasoline. However, strong production of summer gasoline should help prevent that big of a spike. For now, motorists should expect an increase of 5-10 cents before the holiday.”
Crude prices rocketed higher because:
- Wednesday’s weekly EIA supply report showed a dramatic decline in U.S. oil inventories (a decline of 9.9 million bpd or 2.3% from a week ago)
- The U.S. asked allies to end all imports of Iranian oil by November 4, as part of President Trump’s decision to end the 2015 nuclear deal.
- OPEC and Russia agreed to increase production to a lower rate than expected
- Low crude output Venezuela and Libya
- Production challenges in Canada
- Wednesday, WTI crude oil settled at $72.76 per barrel – the highest daily settlement since November 2014
- Before today, the highest daily settlement of 2018 was $72.24 (5/21)
- Crude settled as low as $65/b last week
Find Local Gas Prices
- Daily national, state, and metro gas price averages can be found at Gasprices.aaa.com
- Motorists can find the lowest gas prices on their smartphone or tablet with the free AAA Mobile app. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance.
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