The latest data from the Energy Information Administration (EIA) showed that the national average cost for Regular gasoline in America jumped by eight cents to $2.24 per gallon over the past week, the 10th increase in the last eleven weeks and a rebound of roughly 30 percent from the multi-year low of $1.72 per gallon hit in February. Regionally, the cheapest gas in the country can be found in Oklahoma, where a gallon of Regular costs just $1.95 on average. Residents of California again have to pay the most in the U.S. for Regular at $2.81 per gallon, with San Francisco also being the city with the nation’s highest average gas price ($2.96 per gallon).
The continued rise at the pump seen over the past few months is not surprising because a significant rebound in the price of oil has persisted during this same period. In fact, West Texas Intermediate (WTI) last week climbed back above $45 per barrel for the first time since November, equating a rally of more than 70 percent off of the February lows. Moreover, the recent push higher in the price of oil is already the largest uptrend on record outside of the spike that followed the 1990 Iraq invasion of Kuwait. However, many energy analysts remain skeptical of this latest surge higher in the price of oil, and Eugen Weinberg, head of commodities research at Commerzbank, even cautioned that “There are dangerous parallels to 2015. The market already appears overheated and a correction is overdue.”
Sources: U.S. EIA, DShort, GasBuddy, Bloomberg, Twitter, ReutersPost author: Charles Couch