If the hurricane season causes significant turmoil in US oil refiners, gas prices will be well above current near-record levels. It could rise to "apocalyptic" heights, industry experts warned on Friday.
As of Friday, the national average gasoline price was around $ 4.93, about 9 cents lower than the all-time high reached on June 14. It trades near $ 120 at the beginning of the month.
However, "when the tropical season is active, positive trends and price reduction efforts can be overwhelming," OPIS Energy said, which impacts domestic refining efforts in the Gulf of Mexico. Tom Kloza, Global Head of Analysis, told Fox Business. Friday's network.
"For gasoline, I think hurricanes will give us apocalyptic numbers above $ 5," Kloza said. "What people have to be careful about, and what's really insidious about inflation, is the value of diesel and jet fuels. These fuel inventories aren't increasing, they're tight internationally, and this year You have to pay Piper in the last 100 days. "
Gulf hurricanes have ceased production and gas prices have particularly detrimental consequences given the chaotic conditions of the global energy market. May lead to an increase in fuel. In 2017, after Hurricane Harvey affected fuel production and shipments,US gasoline prices reached a two-year high.
Gas prices are closely related to oil costs I am. Pandemic-related supply chain disruptions, surges in demand, and Russia's invasion of Ukraine have steadily increased in recent months.
Kloza warned that July would be an important time for gas price trends.
"July is arguably the most sought after month," Kloza added. "In July and August, we really need to cross our fingers so that hurricanes and power grids don't damage our refining infrastructure. This is incredibly unstable in some parts of the Gulf. It seems. "
Aside from the sticker shock experienced by American drivers, soaring fuel costs have risen in the United States over the decades. Has hit airlines and other sectors of the economy-high inflation.
The Biden administration is doingscrambling to find a way to lower gas prices. Critics claim that some of Biden's energy policies contribute to the problem.
Biden urged US oil companies to increase production and called for a three-month federal gas tax "holiday." Democrat.
