Drivers can expect to shell out more money at the gas pump as prices have inched upwards.
Gasoline prices are on an upward swing and increased by 5.6 cents from last week to $3.57 per gallon, according to data compiled by GasBuddy.
Prices rebounded, especially in states such as Florida and in the Great Lakes region, said Patrick De Haan, head of petroleum analysis at GasBuddy, a Boston-based provider of retail fuel pricing information and data.
"These areas saw prices jump up in line with behaviors that see such jumps every couple of weeks," he said
Consumers driving cars that use diesel received a slight reprieve as the national average dippled by 1.6 cents during the past week and is selling for $3.87 per gallon at the pump. The decline in diesel prices reached their lowest level since early 2022, "helping to relieve some pressure on hard-hit consumers of diesel," DeHaan said.
Demand for gasoline is rising, which is common as driving ramps up during summer months.
"Exacerbating these routine jumps was government data that showed the third straight week with U.S. gasoline demand over the critical 9-million-barrel-per-day mark, putting upward pressure on average prices in other areas as well,” he said.
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Volatility in Oil Prices
Crude oil prices have remained volatile even as OPEC+ cut production. West Texas Intermediate, the U.S. benchmark for oil, was down by 4.09% to trade at $67.30 a barrel while international benchmark Brent was also down by 3.68% to trade at $72.04.
People should expect more volatility in the crude oil markets since the Federal Reserve is meeting this week. The odds that the central bankers will maintain the current interest rate is at 76.9%, according to the CME's FedWatch Tool. Only 23.1% believe that the Fed could hike rates again.
“With the Fed meeting this week to potentially alter interest rates again, we could see some turbulence in oil markets, potentially impacting states where gas prices were quiet this week, while the states that saw a big jump last week could see some moderate relief in the week ahead," De Haan said.
Oil prices had rebounded last week after OPEC+ members said they would continue their previous cuts of supply through 2024. Saudi Arabia said they would lower production by 1 million barrels daily that would begin as soon as July.
"Markets were still jittery over the potential for more rate hikes amidst stubborn inflation and banking sector challenges," he said.
Investment bank Goldman Sachs (GS) lowered its forecast for crude oil prices by almost 10% on June 11, its third revision in six months. The bank decreased its price target for Brent in December to $86 a barrel from $95 a barrel. The estimate for WTI prices in December was changed to $81 a barrel from $89 a barrel.
“Significant supply beats from Iran and Russia have driven speculative positioning to near record-lows,” Jeffrey Currie, global head of commodities for Goldman Sachs, wrote in a research report.
Gas is Cheapest in Mississippi, Louisiana, Alabama
Drivers will find the most common gasoline price is $3.49 per gallon, an increase of 10 cents from last week. The next most common prices as $3.19, $3.29, $3.59 and $3.69 a gallon.
The median price is $3.47 per gallon, a rise of 8 cents from last week, but still 10 cents lower than the national average.
The lowest average prices for gasoline are located in Mississippi at $2.94 a gallon, followed by Louisiana at $3.05 a gallon and Alabama at $3.09 a gallon.
The highest average prices remain in California at $4.85 a gallon, followed by Washington at $4.75 a gallon and Hawaii at $4.72 a gallon.
