"Fortunately, oil prices backed off a bit last week, which pulled the plug on the gas price hike". Prices usually dip in the fall, but this year they went up.
"If you use gas prices to figure out the time of year it is, you'd probably think it's spring, based on the continued upward trend showing up in much of the country", said GasBuddy analyst DeHaan. "That makes the idea of prices below a dollar even more elusive". AAA said rising oil costs contributed to the high cost of gas.
Products arrive at dozens of cities in Oklahoma, Missouri, Illinois and at its northern terminus in Hammond, Indiana, along the southern end of Lake Michigan. "Fortunately, oil prices let off the throttle last week, allowing gas prices to find what appears to be solid ground". That's caused supply levels to tighten and gas prices to increase.
Oil prices remain just pennies away from multi-year highs at $56.93 per barrel Monday morning as concerns linger about Middle East tensions escalating and OPEC extending production cuts in a few weeks at its annual meeting.
US gas inventories were low this fall, and the USA rig count dropped by 11 to less than 900 rigs.
Since the start of the month, the average price of a gallon of gasoline has risen 9 cents to $2.56, up 39 cents from a year ago, the AAA said Monday. The national average is up 1.6 cents per gallon in the last week to $2.55.
However, according to GasBuddy, average gas prices in MA are slightly lower than they were a month ago, while the national average is 8.6 cents per gallon higher than a month ago.
A week ago, DeHaan said the price increase could be attributed to a major pipeline leak resulting in oil-flow disruption, autumn refinery maintenance and the demand for gasoline late in the season. Gulf Coast areas may see little change along with the Rockies. Texas, where Harvey made landfall, accounts for nearly a third of all USA refinery capacity.
Gulf Coast refinery runs fell again during the week ending October 13, the USEIA stated, because of additional disruptions caused by Hurricane Nate.