For years, information of a hurricane swirling by way of the Gulf of Mexico has been greater than sufficient to spike gasoline costs.
But the swift passage of Hurricane Idalia over the Florida peninsula and thru Georgia and the Carolinas seems to have had solely restricted influence on the pump, in response to AAA.
Gas costs stay steady
AAA described pump costs “neutral,” with the nationwide common for a gallon of gasoline falling by a penny since final week to $3.82 because the nation’s motorists head into the ultimate weekend of the summer season and the put up Labor Day return to high school.
Today’s nationwide common of $3.82 is 7 cents greater than a month in the past however 2 cents lower than a yr in the past.
Oil costs did rise at midweek amid ongoing considerations the hurricane might interrupt gasoline provide within the Southeast. However, some gasoline terminals have resumed operations, and extra are anticipated within the coming days as storms subside and harm assessments could be undertaken, in response to AAA’s evaluation.
![AAA gas price map 8-31-23](https://i0.wp.com/www.thedetroitbureau.com/wp-content/uploads/2023/08/AAA-gas-price-map-8-31-23-1024x482.jpg?resize=788%2C371&ssl=1)
The negligible rise in gasoline costs within the face of a robust hurricane additionally seems to replicate a longer-term development in the direction of American’s utilizing much less gasoline as electrical automobiles turn into extra widespread in massive city areas. Even with the difficulties with the charging networks, EVs account for about 7% of the brand new automobiles offered within the U.S. and almost 25% in California, the nation’s high automotive market, famous Veloz, a corporation that promotes EV gross sales.
Demand for gasoline falls flat
Oil and gasoline specialists, noticed AAA, have famous general gasoline demand this summer season didn’t match earlier years, with consumption getting little “lift” from trip journey this summer season regardless of retail gasoline costs under final yr’s.
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Andrew Gross, AAA spokesperson, stated there’s plenty of hypothesis as to why, however nobody appears to know for certain.
“With visits to the pump rather flat and the price of oil hovering around the $80 per barrel mark, the national average for a gallon of gas will likely stay where it is through this holiday weekend,” he stated.
“Hurricane Idalia may cause regional price jumps due to station damage, flooded roads, and power outages, but as in past years, these things are usually fixed in a few weeks.”
New information from the Energy Information Administration confirmed the demand for gasoline elevated barely from 8.91 to 9.07 million barrels per day final week.
Meanwhile, complete home gasoline shares took a slight step again to 217.4 million barrels. Although demand has elevated, fluctuating oil costs have restricted pump worth will increase.
Earlier this month, the worth for a barrel of oil elevated amid market optimism that oil demand worldwide will likely be extra strong than anticipated throughout this half of 2023 and into 2024. According to the Organization of the Petroleum Exporting Countries (OPEC), world oil demand is predicted to rise by 2.25 million barrels per day (bpd) in 2024, in contrast with progress of two.44 million bpd in 2023.
Additionally, the U.S. Energy Information Administration reported that complete home business crude inventories elevated from 439.8 to 445.6 million barrels.
Source: www.thedetroitbureau.com