Gas prices in the region averaged
"Oil prices have rallied more than what we would have expected in fall," said
But hurricane Florence isn't the culprit, said
Some of the price jump can be attributed to the regular cycles states in the Midwest follow, where prices peak before dropping daily, just to hit another peak, according to the
Several factors in the oil industry are disrupting the normal cycle of fuel costs as demand remains stronger than average moving into the fall season. More people are still traveling among warmer weather and Americans have started purchasing large, less fuel efficient vehicles as gasoline returned to affordability over the last few years.
Within the last four weeks, Americans consumed about 9.7 million barrels each day, up 2 percent from last year. Adding in total oil products, which includes diesel, jet fuel and oil used to make plastic bags, the nation used about 21.4 million barrels per day, up 5 percent from last year, according to the
The sanctions are expected to take between 1 million and 1.5 million barrels of crude oil off the market each day, he said.
"Demand is going down a little bit, but certainly not by millions of barrels a day," DeHaan said.
Those sanctions are already costing consumers about
"It's going to be interesting. (Trump) may now be forced to look back into doing a deal with
Refineries are also putting out a slightly smaller supply as half a dozen in the region undergo maintenance, Hitchens said.
Fall is a common time for refineries to do maintenance since there's usually a lower demand for gasoline, but there's more maintenance going on this year than most, DeHaan said.
Maintenance isn't a huge concern, DeHaan said, but paired with high demand and sanctions, the maintenance will help keep costs elevated.
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