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Los Angeles Gas Prices Today

The higher gas prices are the result of a sharp increase to oil prices. The price of a barrel of West Texas intermediate crude on the New York Mercantile Exchange has increased 58.65% from one year ago, closing at $76.99 Thursday. The root cause of today's high gas prices isn't politics: It's financial pressure on oil companies from a decade of cash-flow losses that have made them change financial tactics. Investment in new wells has dropped more than 60%, causing U.S. crude oil production to plummet by more than 3 million barrels a day, or nearly 25%, just as the Covid virus hit, and then fail to recover with the economy. For an oil-drilling sector that lost 90% of its stock value from 2012 through early last year, it hasn't been the toughest call in the world. Much discussion, including on social media platforms like Twitter, as to why crude oil and gasoline prices have spiked has focused on politics, with followers of former President Donald Trump claiming he kept gas prices low before Biden made them climb. But if there are political leaders to take the credit, or the blame, according to Tom Kloza, president of Oil Price Information Service, the people most responsible are not Americans, but Russian President Vladimir Putin and Saudi Arabia's Crown Prince Mohammed Bin-Salman.

Production limits by the OPEC+ bloc let gas prices rise slightly during Trump's pre-Covid presidency. Even as U.S. crude production kept rising, peaking at 13 million barrels in November 2019, gas prices, which averaged $2.37 a gallon at Trump's inauguration, stayed between $2.24 and $2.92 until Covid sent them plunging to an April 2020 low of $1.77. That pushed U.S. oil drillers to finally cut production back to 9.8 million barrels per day by February 2021. Meanwhile, OPEC+ continued to hold its own production near-steady. The question is how long the restraint by publicly traded oil companies will last. Glickman is betting that it will be durable, with capital spending around $135 billion next year – less than half of 2014's level. Kloza suspects the discipline will break down sooner, helping gas prices keep falling. The worst combination for gas purchasers would be a quick recovery from omicron, followed by a surge in economic activity and continued low spending. That could pull gas prices toward $4 a gallon again if the economy is strong, according to Glickman, while McNally said consumers could benefit from a recent rise in gasoline inventories. (Source:www.cnbc.com))

Average

The average price at the beginning of the year was $3.234, the lowest amount to start a year since 2018, thanks to a sharp drop at the start of the coronavirus pandemic, caused by weakened demand as many people heeded stay-at- home orders, coupled with the oil price war between Saudi Arabia and Russia, according to Jeffrey Spring, the Automobile Club of Southern California's corporate communications manager. Conventional area is any area that does not require the sale of reformulated gasoline. All types of finished motor gasoline may be sold is this area. RFG area is an ozone nonattainment area designated by the Environmental Protection Agency which requires the use of reformulated gasoline. Publication of Low Sulfur On-Highway Diesel (LSD) prices at the U.S. level was discontinued on December 8, 2008 due to a diminishing number of stations selling LSD as a result of EPA diesel fuel regulations. EIA continued to collect LSD prices from retail outlets and included them in the Diesel Average All Types price until July 26, 2010, when no more outlets reported LSD sales. Beginning July 26, 2010 publication of Ultra Low Sulfur Diesel (ULSD) price became fully represented by the Diesel Average All Types price. As of December 1, 2010 (September 1, 2006 in California), any on-highway diesel fuel sold is ULSD as mandated by EPA on-highway diesel fuel regulations. EIA did not collect weekly retail motor gasoline data between December 10, 1990 and January 14, 1991. Monthly and annual averages are simple averages of the weekly data contained therein. For months and years with incomplete weekly data series, the monthly and/or annual averages are not available. See Definitions, Sources, and Notes link above for more information on this table.

A run of eight decreases in nine days to the Orange County average price totaling 2.7 cents ended when it rose one-tenth of a cent to $4.663. The run followed an 18-day streak of increases totaling 14.4 cents that boosted the average price to $4.689, one-tenth of a cent less than the record high of $4.69 set Oct. 8, 2012. Production limits by the OPEC+ bloc let gas prices rise slightly during Trump's pre-Covid presidency. Even as U.S. crude production kept rising, peaking at 13 million barrels in November 2019, gas prices, which averaged $2.37 a gallon at Trump's inauguration, stayed between $2.24 and $2.92 until Covid sent them plunging to an April 2020 low of $1.77. That pushed U.S. oil drillers to finally cut production back to 9.8 million barrels per day by February 2021. Meanwhile, OPEC+ continued to hold its own production near-steady. (Source: www.cnbc.com)

 

 

 

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