Why are gas prices rising? Experts point to extreme heat and oil production cuts
NEW YORK (AP) — Drivers are in for another headache at the pump as U.S. gas prices continue to rise.
The national average for gas prices stood at about $3.78 a gallon on Tuesday — about 25 cents higher than that seen one month ago, according to motor club AAA. While today's prices at the pump remain far lower than they were last year, when energy costs soared worldwide in the months following Russia's invasion of Ukraine, experts say such a jump is unusual.
“Usually it takes a hurricane to move prices that much,” said AAA spokesperson Andrew Gross, who said the rise is especially interesting as “fewer people are are fueling up” their cars this summer compared to years past.
In the U.S., gasoline prices are highly dependent on crude oil. West Texas Intermediate crude, the U.S. benchmark, has stayed above $80 per barrel since Thursday, standing at over $81 as of Tuesday afternoon. That marks a $12 jump since July 3, according to OPIS global head of energy analysis Tom Kloza.
There are a few factors causing oil prices to rise, Gross and Kloza say, including global supply production cuts and impacts of this summer's extreme heat on refineries. Here's what you need to know.
WHY ARE GAS PRICES RISING? BLAME THE HEAT AND PRODUCTION CUTS
This summer's record temperatures are partly to blame for the rising gas prices.
“While the heat may be keeping people home, it’s also keeps refineries from making refined product,” Gross explained, noting that refineries are typically designed to operate between 32 and 95 degrees Fahrenheit (0 and 35 degrees Celsius). “They don’t like temperature extremes because they’re inherently dangerous places... So they dial back the production for safety purposes, but that then constrains supply.”
According to Kloza, there are about 10 million daily...