Analysts – Unchanged US Gasoline Prices Expected to Rise Soon

The current gasoline price in most parts of the United States has stayed quite the same. However, the break may only be short lived moving forward.

The recently released weekly survey of the Energy Department shows that the average price of regular gas in the United States gained 1.4 cents at $3.508 per gallon. In the state of California, the current gasoline price average dropped 0.6 cent at $3.802 per gallon.

The nationwide increase in the cost of gas is attributed by analysts to the recovery of per barrel oil prices.

U.S. crude futures prices are staying around a per barrel oil price of $90 after dropping steeply to $77.60 in June’s final week. The current crude price in the NYMEX is lower by 35 cents at $89.78 per barrel. In London, a similar drop is seen in the current crude price of Brent as it lost 27 cents at $106.20 per barrel.

The increase in the per barrel oil prices has also pushed gasoline futures higher, which led analysts to expect an additional rise at the pump.

According to Patrick DeHaan, GasBuddy.com’s senior petroleum analyst, although drivers in most regions saw stable gasoline prices over the past week, it is only a matter of time before the increase in wholesale costs in the past week causes a continuous incline on the retail price of gas. The rally in stocks in the latter parts of the week also seemed to push commodities higher which, making it somewhat more likely that gas prices will start to gain over the coming week.

By: Chris Termeer