• 20 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 22 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 1 day Schlumberger Warns Of Moderating Investment In North America
  • 1 day Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 day Energy Regulators Look To Guard Grid From Cyberattacks
  • 1 day Mexico Says OPEC Has Not Approached It For Deal Extension
  • 1 day New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 1 day Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Global Energy Advisory Friday 20th October, 2017

Global Energy Advisory Friday 20th October, 2017

As tensions surrounding Kurdistan rise,…

Oil Stocks To Watch As Geopolitical Risk Mounts

Oil Stocks To Watch As Geopolitical Risk Mounts

Oil market sentiment has turned…

Summer Gas Prices Down Despite Geopolitical Turmoil, Higher Demand

Summer Gas Prices Down Despite Geopolitical Turmoil, Higher Demand

The American Automobile Association (AAA) has reported that the average pump price of a gallon of gasoline was $3.52 at the end of July, the lowest since March. In fact, July prices dropped more than they have in six previous Julys.

That’s not what analysts have been predicting. Although the U.S. Energy Information Agency (EIA) said July 24 in its weekly petroleum report that in the past two weeks, refineries took in record amounts of crude -- 16.8 million barrels per day, beating a 2005 record -- analysts say global demand also is rising, and refiners aren’t cutting the costs they charge oil companies, so they’ve been forecasting no drops in pump prices.

Summer is also when more Americans hit the road than at any other time of the year, and the increased demand for gasoline ordinarily leads directly to an increase in its retail price. Contributing to that rise is the federal mandate that refineries produce a cleaner, more expensive blend of gasoline in the summer -- a cost that’s passed on to the retail customer.

This summer also hasn’t been a quiet one for some major oil-producing countries; There’s the conflict between Russia and Ukraine, which could threaten gas supplies to Europe, and violence in northern Iraq spurred by militants of the Islamic State, formerly the Islamic State of Iraq and Syria (ISIS).

All of this would normally contribute to keeping prices high, because regardless of oil’s source, it’s fungible, so all oil prices rise or fall to a fairly uniform level worldwide. These prices did remain fairly high, but only in previous months, according to AAA spokesman Michael Green, not in July.

“Over the past month or so, we haven’t seen any situations where actual oil production or exports have been affected,” Green told The Christian Science Monitor. As a result, he said, “We expected prices … to remain flat [this summer].”

The July 31 AAA report says gasoline prices dropped by an average of 16 cents per gallon in July, compared with the same month in previous years.

Related Report: The 5 NEXT Big Oil & Gas Trends

In fact, from 2011 through 2013, gasoline prices increased by the very same amount – an average of 16 cents per gallon – during July.

By. Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News