2018 gas prices forecast to be highest in years

Marcus Newton
January 13, 2018

For LIVE fuel price averages, visit http://FuelInsights.GasBuddy.com.

They say the average price of gas is down 2.5 cents to $2.64 per gallon. This phenomenon is normal this time of year, and usually leads to lower gas prices in January and February.

As of 2 p.m. Monday, Shell Marianas had not increased its prices, but it was expected to follow suit.

"The saving grace is that United States oil producers have filled some of the void left as a result of OPEC cuts, but that will still mean oil prices command a premium to prior years, and motorists will be paying more for fuels as a result", DeHaan says. Gasoline inventories jumped by almost 5 million barrels while distillate inventories, made up of heating oil and diesel, gained almost 9 million barrels even amidst high demand due to cold weather.

Knoxville- $2.25, down 1.3 cents per gallon from last week's $2.27. By AAA's account, there were no major supply issues, though the regional market is running a 7 billion barrel deficit for gasoline supplies when compared with previous year.

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Demand for gas may fall in the wake of the holidays, but any dip in demand is unlikely to last long, according to GasBuddy's 2018 Fuel Price Outlook. WTI settled above $62 a barrel last week, for the first time since December 2013, as global supply levels tighten. "But prices historically will drop after the ball drops on New Year's Eve". "Unfortunately, springtime is a springboard for prices at the pump, and we may see a 40 to 50 cent jump by the summer".

The average for Sunday was down 2.9 cents at $2.43, according to GasBuddy's daily survey of 5,345 gas outlets in Ohio.

"On the week, consumer demand for gasoline decreased", she said in a statement.

DeHaan said it is not unusual for wholesale gas prices to fluctuate by 3 to 10 cents overnight, and retail prices typically reflect the changes.

Other reports by MaliBehiribAe

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