Gas prices offer relief since Memorial Day weekend, but are up over the previous four years for this week.
As c-store customers gear up for July 4 travel, they’re facing the highest pump prices for the Independence Day holiday in four years. As of Monday, July 2, the national average price of gas stood at $2.86, according to AAA.
Despite being the highest Independence Day prices in four years, gas prices are still 11 cents cheaper than on Memorial Day.
“The national gas price average has held fairly steady for the past 10 days, suggesting that U.S. demand is keeping pace with supply and stabilizing summer gas prices,” said Jeanette Casselano, AAA spokesperson. “However, elevated crude oil prices and other geopolitical concerns could tilt gas prices more expensive in the early fall despite an expected increase in global crude production from OPEC and its partners.”
AAA reported that it is tracking the following factors that are sure to impact pump prices through fall:
Domestic crude inventories: For the first summer driving season in five years, the U.S. has seen the largest one-week reduction (9.9 million bbl) in crude inventories. A consistent decline in supplies could spark higher gas prices.
Crude production and exports: Refinery runs are at an all-time high and exports are at record levels, which impacts supply levels.
Gasoline demand: The latest Energy Information Administration (EIA) data shows U.S. demand at 9.7 million b/d, one of the highest levels of the year, and could hit a new record with Independence Day holiday travel.
Crude oil prices: Last week, crude oil hit $74/bbl – its highest level since 2014.
Geopolitical concerns: Market observers are watching crude production levels in Libya and Venezuela amid economic woes in Venezuela, and details on the Iran sanctions, all of which are influencing market prices.
