Tumbling Inventories Send US Gasoline, Diesel Prices to Record Highs

From ZeroHedgeposted 2 weeks ago

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By Tsvetana Paraskova of OilPrice.com

U.S. gasoline prices continued to rise, setting another all-time high on Wednesday at $4.404 per gallon average nationwide, data from AAA showed today.

Average U.S. gasoline prices have reached new records every day this week, with Monday’s price at $4.328 per gallon. The gasoline price increased to $4.374 a gallon on Tuesday, to pass the $4.40 mark on Wednesday for the latest all-time high.

High international crude oil prices, with markets rattled by the Russian invasion of Ukraine and a post-COVID recovery in travel demand, have been pushing U.S. gasoline prices higher this year.

According to forecasts by fuel-savings app GasBuddy, U.S. gasoline prices will see the highest monthly average for 2022 in May. GasBuddy sees prices averaging $4.25/gal in May, but they could rise as high as $4.51/gal nationally, Patrick De Haan, head of petroleum analysis for GasBuddy, tweeted on Tuesday. Gasoline prices could hit $4.62/gal on some days in August this year, GasBuddy’s forecasts show. The yearly average for 2022 is predicted at $3.99 per gallon.

Meanwhile, the price of diesel has also soared to record highs amid very tight domestic inventories of middle distillates and a global shortage of supply. Diesel is used in every part of the industrial activity and supply chain, from goods transportation to manufacturing and agriculture; it fuels America’s economy. Diesel prices have soared to record highs in recent months, adding further upward pressure on U.S. inflation figures.

 

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