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Fuel costs have climbed by about 7 cents this week, largely resulting from issues at oil refineries. However economists are watching costs intently as an outdated foe begins to have an effect on them in the course of the Atlantic hurricane season.
The present nationwide common value of a gallon of fuel is $3.75, based on AAA. That’s 11 cents lower than a month in the past however 56 cents greater than this time final yr. Costs sit $1.27 under their mid-June peak.
Present Enhance Not Associated to Ian
Costs fell for 99 straight days earlier than lastly ticking up final week. Fall usually brings a sudden value drop because the nation switches to cheaper winter blends, then new volatility as storm season begins.
However the present rise has nothing to do with hurricanes. A fireplace that killed two employees left a refinery in Ohio indefinitely closed. Deliberate upkeep at a number of different refineries additionally lowered the nationwide provide of gasoline.
Fortunately, demand is falling with it. The U.S. Power Info Administration reviews that America’s demand for gasoline declined final week. Demand is at the moment decrease than even September of 2020 when a lot of America was topic to COVID-19-related journey restrictions.
Ian Prone to Miss Most Fuel Manufacturing
Hurricane Ian is headed into the Gulf Coast.
Yesterday, AAA spokesperson Andrew Gross defined, “Hurricane Ian might trigger issues, relying on the storm’s monitor, by disrupting oil manufacturing within the Gulf of Mexico and impacting giant coastal refineries.”
However the Nationwide Hurricane Middle’s present projected monitor locations the storm too far east to have a lot influence on fuel manufacturing.
Patrick De Haan, head of petroleum evaluation for Fuel Buddy, tweeted this morning that he’s “not anticipating a value rise in Florida at the moment resulting from Ian.”
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