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Tag: Gas Prices

  • GasBuddy: Avg. Albany prices jump 8.8 cents in last week

    GasBuddy: Avg. Albany prices jump 8.8 cents in last week

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    ALBANY, N.Y. (NEWS10) — Average gasoline prices in Albany have risen 8.8 cents per gallon in the last week, averaging $3.46/g on Monday, according to GasBuddy’s survey of 546 stations in Albany. Prices in Albany are 14.7 cents per gallon higher than a month ago and 2.7 cents per gallon higher than a year ago. The national average diesel price has risen 2.0 cents in the last week and is $4.02 per gallon.

    According to GasBuddy price reports, the cheapest station in Albany was priced at $3.19/g Sunday, while the most expensive was $3.79/g, a difference of 60.0 cents per gallon. The lowest price in the state Sunday was $2.35/g while the highest was $4.39/g, a difference of $2.04/g.

    The national average price of gasoline has risen 6.4 cents per gallon in the last week, averaging $3.51/g Monday. The national average is up 27.0 cents per gallon from a month ago and 8.7 cents per gallon higher than a year ago, according to GasBuddy data compiled from more than 11 million weekly price reports covering over 150,000 gas stations across the country.

    Historical gasoline prices in Albany and the national average going back ten years:

    March 25, 2023: $3.43/g (U.S. Average: $3.42/g)
    March 25, 2022: $4.28/g (U.S. Average: $4.24/g)
    March 25, 2021: $2.88/g (U.S. Average: $2.86/g)
    March 25, 2020: $2.31/g (U.S. Average: $2.03/g)
    March 25, 2019: $2.62/g (U.S. Average: $2.65/g)
    March 25, 2018: $2.62/g (U.S. Average: $2.60/g)
    March 25, 2017: $2.30/g (U.S. Average: $2.28/g)
    March 25, 2016: $2.07/g (U.S. Average: $2.03/g)
    March 25, 2015: $2.51/g (U.S. Average: $2.42/g)
    March 25, 2014: $3.68/g (U.S. Average: $3.53/g)

    Neighboring areas and their current gas prices:

    Waterbury- $3.39/g, up 5.7 cents per gallon from last week’s $3.34/g
    Hartford- $3.38/g, up 8.4 cents per gallon from last week’s $3.30/g
    Springfield- $3.25/g, up 6.1 cents per gallon from last week’s $3.19/g

    “We’ve now seen the national average price of gasoline rising for four straight weeks, which isn’t uncommon for this time of year. What is uncommon is the number of attacks on Russian oil refiners; attacks which could have ripple effects worldwide if they continue,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Russia could see more capacity impacted by the attacks, forcing it to buy such products on the global market, pushing prices up everywhere. With oil prices now under more pressure and attacks potentially increasing on Russian refiners, we could be in for a few more weeks of rising prices. Significant as well is the fact that Americans are now seeing inflation again at the pump with prices higher than they were a year ago.”

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    Michael Mahar

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  • Pain at the Pump: Gas prices on the rise ahead of the spring & summer season

    Pain at the Pump: Gas prices on the rise ahead of the spring & summer season

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    Gas prices rising

    If it feels like you are paying more at the pump these days, you are. The average price in the Seattle area is sitting at around $4.29 per gallon, and it’s climbing heading into spring.

    SEATTLE – If it feels like you are paying more at the pump these days, you are. The average price in the Seattle area is sitting at around $4.29 per gallon, and it’s climbing heading into spring. 

    For the next six to eight weeks, experts say prices will continue to rise.  It’s all part of a normal spring and summer cycle, but it is still challenging for drivers who are trying to stick to their budgets. 

    “I think consumers are concerned about how they are driving their cars,” said Deanene Slater, a Seattle driver. “It’s definitely something to consider in the budget. I luckily don’t drive a whole lot, but it is at least $60 or so to fill up my car.” 

    After a fall and winter dip, prices are picking up heading into spring, causing Slater to consider a more fuel-efficient vehicle. 

    “This one is going to probably turn into a hybrid at some point,” said Slater. 

    Gas Buddy reports that the average regular gas price in the Seattle area is about $4.29 to 4.30 a gallon after jumping .04 cents in the past week.  

    “This is the time of year when we tend to see gas prices starting to go up,” said Patrick De Haan, Head of Petroleum Analysis at Gas Buddy.

    De Haan says the national average jumped about 17 cents over where it was about a month ago.  

    “Gas prices could still go up another 25 to 50 cents over the next couple of months,” said De Haan. 

    He says prices typically increase this time of year because more Americans typically start filling up as spring approaches and refineries start seasonal maintenance before the summer driving season.  

    “That refinery maintenance also means less gasoline being produced as that work is carried out. We are also beginning the transition back to more expensive blends of summer gasoline that are required in the warmest summer months. You put three of those together, and it’s a recipe for rising prices,” said De Haan. 

    “I try to, I guess, eat out less, so I know I have enough money for gas,” said Misha Miropolskiy. 

    Drivers say with more pain at the pump over the next few months, budgeting will be key.   

    “I noticed that some places like Costco are cheaper, so I try to get my gas there as much as possible,” said Miropolskiy. 

    Overall, De Haan believes it’s going to be a similar year to last year, barring any refinery problems. On the positive side, De Haan says while Seattle gas prices are rising, they are still about .08 cents cheaper than they were about a month ago. 

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    Jennifer.Dowling@fox.com (Jennifer Dowling)

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  • Which State Has The Cheapest Marijuana

    Which State Has The Cheapest Marijuana

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    Who doesn’t love a good bargain? Or bragging right for a good deal….well here is the best deals on weed

    Everyone loves a good bargain! Be it real estate or eggs, most people look at prices and compare. A third of people claim they’re the best bargain hunter they know (34%). In addition, 87% say they’ll carry money-saving habits with them forever.  In fact, the reason prices in at 99, . 95, or . 98 is a psychological pricing strategy to make products appear cheaper than they are. This is based on the theory that consumers are more likely to perceive an item priced at $4.99 as being significantly cheaper than an item priced at $5.00, even though the difference is only one cent. So which states have the cheapest marijuana and gas?

    One of the top bargain is the hunt for cheap gas…Costco is a winner.  Gas prices are very complex and a global market. And there is always a profit motive. One study found gas prices fall twice as slowly as they rise after a major change in oil prices. This means, for example, if it took four weeks for gas prices per gallon to increase 25 cents, it would take them eight weeks to fall 25 cents once oil prices returned to their starting level. With this information, here is the top 5 places to fill you tank at the best price.

    RELATED: California or New York, Which Has The Biggest Marijuana Mess

    • Oklahoma.  $2.59
    • Arkansasa.  $2.63
    • Missouri      $2.63
    • Mississippi   $2.66
    • Wisconsin   $2.67
    Photo by smodj/Getty Images

    When is comes to marijuana, it is a bit tricky.  Legal New York City mainly sales via a black market.  They have over 1,500 unlicensed dispensaries selling products at a premium.  BDSA, one of the top data analysts shared information where consumers can purchase the cheapest legal weed.

    It Is not surprising market forces push up New Jersey and New York with all the weed available from the black market.  And some states put a burdensome amount of taxes on products which always drives up the price.

    RELATED: The Most Popular Marijuana Flavors

    Here is the list!

    • New Jersey      $17.9
    • New York         $15.5
    • Missouri           $13.5
    • Maryland          $13.3
    • Illinois              $12.7
    • Florida              $11.1
    • Pennsylvania.    $11.0
    • California          $10.4
    • Massachusetts   $9.8
    • Ohio                 $9.7
    • Nevada             $9.2
    • Oregon             $7.1
    • Colorado           $7.0
    • Arizona             $6.9
    • Michigan           $5.4

    Price doesn’t always mean the best – it means a bargain.  In the alcohol world, the most popular beers are at lower mid price and are perceived to have a good taste.  This includes top-ranked Corona, joint second-placed Bud Light, and fourth-ranked Budweiser.  So find your favorite and enjoy!

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    Anthony Washington

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  • Let's Check In On Communism: Cuba Raising Gas Price To $20 A Gallon

    Let's Check In On Communism: Cuba Raising Gas Price To $20 A Gallon

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    Opinion

    Creative Commons

    We have far-left Democratic politicians who want to bring full blown socialism to the United States. They’re not ashamed of it, some of them even refer to themselves as socialists.

    They say capitalism is bad. They say free markets are wrong.

    Is $20 a gallon for gas wrong? Because that’s the state of communism in one of the world’s last bastions of the defeated ideology.

    RELATED: ‘I Have No Words’: MSNBC’s Mika Brzezinki Beside Herself Over Poll Showing Key Voter Bloc Moving To Trump

    In the communist country of Cuba, the regime is going to deliberately raise the price of gasoline to astronomical heights.

    Jalopnik reports, “The Cuban government has announced that it will be raising the country’s fuel prices by over 500 percent in February. Pump prices will spike from 25 Cuban pesos to 132 pesos per liter, according to the BBC.”

    The story continues:

    To use figures more relatable for us Americans, the prices are jumping from $3.94 per gallon to $20.86. The sharp increase paired with the opening of 29 gas stations that will exclusively accept U.S. dollars serve as a government attempt to bolster the country’s struggling economy.

    It’s not a complete surprise that Cuba’s communist government is opening dollar-only gas stations. The U.S. dollar is the most widely used currency in international trade, and Cuba’s foreign currency reserve is heavily depleted. The government is hoping to use revenue from these new stations to purchase fuel on the international market.

    This is what communism gets you. This is what socialism gets you. Even during the worst days of Bidenflation, our nominally mixed-market economy held gas to (for the most part) less than $5 per gallon.

    And that was crushing for middle-class Americans. $20 gas would grind our entire country to a halt.

    RELATED: Elon Musk: Biden ‘Actively Facilitating’ Illegal Immigration As Caravan Of 15,000 Illegal Immigrants Reportedly Heads To The U.S.

    There’s a Reason Cubans Flee for America

    The radical leftist idea that we should somehow replicate this kind of socialism in the U.S. is something the overwhelming majority of Americans would never stand for in practice.

    Cubans have regularly tried to illegally enter America on rafts in shark-infested waters for a reason.

    No one in America is trying to do the same to get into Cuba.

    There’s a reason for that.

    Hunter Biden Flees Committee Hearing After Nancy Mace Tells Him To His Face ‘You Have No Balls’ and Should Be ‘Arrested Right Here And Right Now’

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    John Hanson

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  • Donald Trump Fuels Instant Fact Check With Latest Ridiculous Lie

    Donald Trump Fuels Instant Fact Check With Latest Ridiculous Lie

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    Donald Trump’s latest untruth received a swift fact check on X (née Twitter).

    The Republican 2024 front-runner claimed gas is now selling for “5, 6, 7 and even $8 a gallon” during an interview with former Fox News host Lou Dobbs that aired Monday on LindellTV, the platform founded by MyPillow CEO and longtime Trump ally Mike Lindell.

    Attorney Ron Filipkowski shared the clip of Trump’s false claim on X and a reader-added community note was soon added to the post.

    It read, “GasBuddy finds not one single station in their database of ~150,000 gas stations at $8 per gallon.”

    In fact, according to the American Automobile Association, the national average price on Monday was $3.077 per gallon. An AAA press release last week also noted that “like holiday decorations, gas prices are coming down.”

    It’s not the first time Trump has wildly exaggerated gas prices in a bid to stir anger against President Joe Biden.

    The four-times-indicted former president made the same claim during a 2024 campaign rally in Iowa last month.

    “Gasoline prices are now 5, 6, 7 and even 8 dollars a gallon,” he said. “By contrast, under the Trump leadership, my leadership, inflation was nonexistent, and we had gasoline down to $1.87 a gallon.”

    Related…

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  • PolitiFact – Are gasoline prices under Joe Biden ranging from $5 to $8 a gallon, as Donald Trump said?

    PolitiFact – Are gasoline prices under Joe Biden ranging from $5 to $8 a gallon, as Donald Trump said?

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    For President Joe Biden’s critics, the summer of 2022’s record-high gasoline prices are a rhetorical gift that keeps on giving.

    During a Dec. 13 rally in Coralville, Iowa, former President Donald Trump — the front-runner for the 2024 Republican presidential nomination — sought to compare gasoline prices on his watch to those under Biden.

    “Gasoline prices are now $5, $6, $7 and even $8 a gallon,” Trump said, adding that gasoline prices were “down to $1.87 a gallon” during his presidency.

    Trump cherry-picked these statistics. For the vast majority of U.S. gas stations, his claim is inaccurate.

    Gasoline prices under Trump, Biden

    Gasoline prices are higher under Biden than they were under Trump. Federal Energy Information Administration data shows that the average gasoline price during Trump’s four-year term was $2.46 per gallon. During Biden’s presidency so far, the average has been $3.54. (These figures are not adjusted for inflation.) 

    As Trump’s campaign staff told PolitiFact, monthly gasoline prices during his presidency never cracked $3 a gallon, while the price under Biden has exceeded $3 every month since May 2021, his fifth month in office. In June 2022, gasoline prices hit an average of $5.01 per gallon, a record high.

    Gasoline prices rose initially during Biden’s tenure because of the post-coronavirus pandemic recovery. As economic activity, commuting and travel rebounded, fuel demand rose faster than global supplies did, driving up prices.

    Then, in February 2022, Russia invaded Ukraine. NATO countries and allies sought to reduce purchases of Russian crude oil as a penalty. And other major oil producing countries, such as Saudi Arabia, largely resisted requests to increase production to fill the void, which hampered supply. 

    Current gasoline prices

    Since its summer 2022 peak, the price of gasoline has dropped significantly: During the week of Dec. 11, the nationwide average per-gallon price was $3.14.

    Not only is the current national average far below the prices Trump cited, but it’s also rare to find any of the prices Trump referred to at an individual gas station.

    GasBuddy.com collects crowdsourced data on gasoline prices across the country, compiling granular pricing statistics from the nation’s 150,000 gas stations. On Dec. 14, GasBuddy’s head of petroleum analysis, Patrick DeHaan, said his latest data shows that no station in the U.S. is selling gasoline for $8 a gallon. 

    DeHaan said one station has a price above $7, about 150 stations are selling a gallon for more than $6, and about 1,000 are charging more than $5 a gallon. 

    Add up all of those stations and it works out to less than eight-tenths of 1% of all gas stations in the U.S. That means 99.2% of stations are selling gasoline at rates below what Trump said at his Iowa rally.

    Who are these expensive outliers? DeHaan says they are often stations in rural areas with few competitors. For example, one is a Vidal Junction, California, station at a Sonoran Desert crossroads near the Arizona border. It is charging $7.80 a gallon, DeHaan said.

    If you’re in Vidal Junction, “there are not many options,” he said.

    Outlier prices such as that one are not unique to the Biden era, DeHaan added. During Trump’s presidency, stations such as Suncoast Energy in Orlando, Florida — which is near an airport with thousands of returning rental cars a day — regularly ranked near the top of GasBuddy’s list of priciest gasoline, he said. 

    “These stations are extremely limited, and by no means are they representative of market conditions,” he said.

    Also, gasoline prices vary by city, state and region, and some places have gasoline prices that are more expensive than the national average. 

    California is always an expensive state to buy gasoline. The current statewide average is $4.46, and in San Francisco, the current average price is $4.50 a gallon. 

    Still, neither the California or San Francisco prices come close to the ones Trump cited.

    Outliers exist on the low side, too. DeHaan said four stations in Colorado are currently selling gasoline for $1.99 per gallon.

    Trump’s claim that gasoline was $1.87 a gallon under his leadership

    The lowest average weekly price during Trump’s presidency came the week of April 27, 2020: $1.77 a gallon, a bit lower than what Trump said at his Iowa rally.

    However, this needs context: That low price came early in the COVID-19 pandemic, when fewer people were on the road. This pushed gasoline prices to unusually low levels.

    By the time Trump left office, the average price per gallon was $2.38 — well below its current level under Biden, but still higher than the figure he cited.

    Our ruling

    Trump said, “Gasoline prices are now $5, $6, $7 and even $8 a gallon.”

    Trump’s statistics are cherry-picked. GasBuddy.com data shows that about 99.2% of U.S. gas stations are selling gasoline for less than $5 per gallon. Not a single one of the nation’s 150,000 stations is selling gasoline for $8 a gallon.

    Because some stations are charging more than $5 a gallon, the claim contains an element of truth. But it ignores the vast majority of stations. We rate it Mostly False.

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  • Donald Trump Just Told A Huge Casual Lie And He’ll Get Away With It

    Donald Trump Just Told A Huge Casual Lie And He’ll Get Away With It

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  • It’s the cheapest Thanksgiving Day for drivers since 2020. Here’s where gas prices could go next.

    It’s the cheapest Thanksgiving Day for drivers since 2020. Here’s where gas prices could go next.

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    Drivers find lower gas prices at the pump this Thanksgiving


    Drivers find lower gas prices at the pump this Thanksgiving

    00:50

    Drivers taking on the Thanksgiving travel rush this year have one thing to be thankful for: Lower gas prices. 

    Nationally, the average price of gas hit $3.27 a gallon on Thursday, according to data from auto club AAA. Meanwhile, data at GasBuddy, a fuel tracking service, showed the national average at $3.24 a gallon, marking the cheapest Thanksgiving Day for drivers since 2020, GasBuddy head of petroleum analysis Patrick De Haan said Thursday on social media.

    “As millions of Americans gear up to hit the road for Thanksgiving, the national average is seeing its longest streak of declines in over a year, reaching a ninth straight week as gas prices fall to their lowest since January,” De Haan said Monday in a statement. 

    Gas prices have plunged due to a combination of weakening oil prices and flattening demand for gasoline, according to AAA. Those factors could sustain a drop off in gas prices through the rest of the holiday season, according to De Haan. 

    “The fall in gas prices, largely seasonal due to weakening gasoline demand, could extend for another week or two, leading to potentially the lowest gas prices since 2021 by Christmas,” De Haan added.

    Falling gas prices come even as more than 55 million people are expected to hit the roads for Thanksgiving this year, marking the busiest turkey day travel rush in several years, according to AAA’s estimate.  

    However, while the national Thanksgiving Day gas price is lower this year, prices at the pump differ widely from state to state, according to AAA data. Fuel prices have fallen below $3 a gallon, on average, in 13 states, including Texas at $2.74, Mississippi at $2.77 and Georgia at $2.80, the data shows. Meanwhile, fuel still costs more than $4 a gallon in Washington State, Oregon and Nevada, according to AAA. 

    Gas Prices Wobble in 2023

    Although prices at the pump will put a smaller dent in travelers’ wallets this Thanksgiving Day compared to years past, fuel prices remain higher than they were earlier this year, De Haan said Wednesday on social media. 

    GasBuddy data shows that gas prices actually rose by as much as roughly 60 cents from January to August 2023, topping $3.80 a gallon. However, the national gas price has declined fairly steadily since September, according to the data.  

    Elizabeth Napolitano


    elizabeth-napolitano-cbsmoneywatch.jpg

    Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News’ BizTech Unit and worked on the Associated Press’ web scraping team.

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  • Gas prices are plunging below $3 a gallon in some states. Here’s what experts predict for the holidays.

    Gas prices are plunging below $3 a gallon in some states. Here’s what experts predict for the holidays.

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    Gas prices are getting lower


    Gas prices are getting lower

    00:43

    Gas prices are plunging in many parts of the nation, just ahead of the holiday travel season.

    Nationally, the average gas price declined to $3.44 last week, marking a 37-cent drop from a month ago, according to auto club AAA. Prices have plunged almost 10% in part because of flat demand for gasoline combined with a decline in the per-barrel cost of oil, the group added. 

    Gas prices are now below $3 a gallon in eight states, including Georgia at $2.93 and Mississippi and Texas at $2.94, according to fuel tracker GasBuddy. That’s likely to continue given the market’s dynamics, which means drivers in additional states are likely to see their local gas prices drop below $3 a gallon — providing some pocketbook relief as the holidays approach and more Americans take to the roads, according to experts.

    “While the national average is now at its lowest since March, the decline is likely to continue for at least another couple of weeks, with California likely soon falling below $5, while more states fall under $3,” Patrick De Haan, head of petroleum analysis at GasBuddy, said. 

    He noted that prices have fallen for seven consecutive weeks. “Millions of Americans already have access to $2.99 a gallon or cheaper, and I expect that number to continue to grow this week,” he added.

    The nation’s most expensive gas prices are in California at $5.12 a gallon, Hawaii at $4.75 a gallon and Washington state at $4.56, according to AAA. 

    Oil prices

    Gas prices are primarily tied to the cost per barrel of crude oil, which is the raw material refineries need to create vehicle gasoline. West Texas Intermediate crude oil stood at $81.48 a barrel this week, down from $83.93 last week, while Brent crude is $85.65 per barrel, down from $89.04 last week, according to GasBuddy. 

    Demand for gasoline has fallen off, dropping to 8.69 million gallons per day in the final week of October compared with 8.94 million gallons in mid-October, according to the U.S. the Energy Information Administration

    To be sure, gas prices often drop near year-end as gas stations switch to a winter-blend formula that’s cheaper for refineries to produce. That’s because the blend doesn’t require workers to add the ingredients needed to keep gasoline from evaporating in higher temperatures during the summer months. That results in a price break at the pump. 

    Still, some energy experts had expected the ongoing Israel-Hama war to push oil prices skyward. However, “the tragic recent events in the Middle East are not, as yet, having any major impacts on oil prices,” David Kelly, the chief global strategist at JP Morgan Asset Management, said in an analysts’ note this week. 

    That’s partly because Israel and the Palestinian territories are not significant oil producers on the global market, AAA said. 

    Khristopher J. Brooks

    Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.

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  • PolitiFact – Have gasoline prices risen by 63% during Joe Biden’s presidency? They’ve risen, but by less

    PolitiFact – Have gasoline prices risen by 63% during Joe Biden’s presidency? They’ve risen, but by less

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    As one of the most commonly noticed consumer prices, gasoline costs shape many consumers’ perceptions of inflation and the broader economy.

    In an Oct. 23 post on X, formerly Twitter, West Virginia state Senate candidate Chris Rose, a Republican, sought to leverage voter concern about prices at the pump into support for a pro-energy agenda that would benefit his state. 

    “West Virginia coal, oil, and gas will lead the way to America being energy dominant again; we just need to get the government out of the way. #WVEnergy #wvpol,” Rose posted.

    Attached to the post was a graph showing how gasoline prices have fluctuated since President Joe Biden entered office in January 2021. The graph’s texth said, “Gas prices up 63% in just 31 months under Biden administration.”

    Gas prices have increased on Biden’s watch, but by the time Rose posted, they had risen by less than 63% compared with when he entered office.

    Rose did not respond to inquiries for this article. He is running in Senate District 2, which includes parts of Wetzel, Marion, and Monongalia counties. Republican Charlie Clements holds the seat now.

    To vet the amount of the increase on Biden’s watch, we examined weekly gasoline price data from the U.S. Energy Information Administration, a federal agency.

    During Biden’s first week in office, the national average retail gasoline price was $2.39 per gallon. When Rose tweeted, the price had risen to $3.53. That’s an increase of just under 48%, not 63%.

    Once we found the chart’s source, we found an explanation.

    It came from a blog post from the Media Research Center, a group critical of what it considers liberal media bias. The identical gasoline price graph was one of several included in the post, which was titled, “Bidenomics: Five Charts the Media Don’t Want You to See.”

    The blog post was originally published Aug. 30, when the most recent weekly national average price was $3.87. That would represent an increase of almost 62%, which is close to what the chart said.

    The problem for the accuracy of Rose’s Oct. 23 post is that the chart’s data was from Aug. 30 — and between those dates, prices at the pump fell from $3.87 to $3.53, a drop of nearly 9%. This is why the overall rise on Biden’s watch was 48%, rather than 63%, when Rose posted.

    As it happens, prices have continued to fall. In the subsequent week’s data, prices fell to $3.47. That means the up-to-date rise on Biden’s watch is about 45%.

    Also, while Biden’s policies may have marginally affected gasoline prices, experts say the price of gasoline — whether it’s high or low by historical standards — mostly isn’t something presidents can control. 

    As PolitiFact has reported, gasoline prices initially rose on Biden’s watch because of the recovery after the worst of the coronavirus pandemic. As economic activity, commuting and travel rebounded, fuel demand rose faster than global supplies did.

    Then, after Russia invaded Ukraine in February 2022. NATO countries and allies sought to buy less Russian crude oil as punishment for its war, which has hampered supply. Other major oil producers, such as Saudi Arabia, have largely resisted requests to increase production to fill the void. 

    Overall, this has kept global crude oil prices high, even though they have fallen from their peak in summer 2022.

    Our ruling

    Rose said that gasoline prices are “up 63%” under Biden.

    Gasoline prices have risen under Biden, but Rose’s post used old data. By the time he posted, gasoline prices had retreated, making the increase under Biden 48% rather than 63%.

    Also, experts say that the rise under Biden was largely independent of his policies. Gasoline prices initially rose because of an economic comeback after the COVID-19 pandemic slowed, and then resumed rising after Russia invaded Ukraine.

    We rate the statement Half True.

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  • From groceries to flights to mobile data: Why is Canada so expensive? – MoneySense

    From groceries to flights to mobile data: Why is Canada so expensive? – MoneySense

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    That doesn’t mean everything costs more in Canada, says David Soberman, a professor of marketing and Canadian national chair of strategic marketing at the University of Toronto’s Rotman School of Management. Canadians may pay more than Americans for the same basket of goods, he says, but we pay less than people in some other countries, like Switzerland. 

    Why do we pay what we do? That’s a difficult question to answer. The reasons are complex and vary depending on the type of good or service. Let’s look at some of the main contributors to Canada’s cost of living, why they are as expensive as they are, and steps you can take to reduce those costs. 

    Why are groceries so expensive in Canada?

    There are a few reasons groceries cost so much in Canada, says Soberman. It’s expensive for companies to ship food products across a country as large as ours, and those costs are reflected in what you pay in stores, he says. But a highly concentrated grocery industry is also a big contributing factor. 

    Canada’s grocery market is dominated by just a few companies. Domestically, there are three big players: Loblaws, Metro and Sobeys. (Some chains, such as Save-On-Foods in Western Canada, compete on a regional basis.) The next largest retailers for grocery sales are Walmart and Costco. Together, these five companies account for more than three-quarters of all food sales in Canada, according to Canada’s Competition Bureau. In 2023, 49% of Canadians report buying groceries from Loblaws or one of its sister stores. 

    Critics argue such concentration allows the dominant companies to participate in anti-competitive practices that ultimately harm consumers through higher prices. In grocery, this takes the form of fixing bread prices, preventing competitors from selling certain products, or collectively deciding when to freeze grocery prices—and when to unfreeze them. It’s a problem experts say applies to other industries, such as telecommunications and air travel. 

    When Canada’s Competition Act was introduced, in 1986, there were at least eight large grocery chains in Canada, each owned by a different company. Since then, more than a dozen major mergers and acquisitions have reduced the level of competition. Today, three big supermarket companies own several smaller chains, including discount brands that could be mistaken for rivals: Loblaws has No Frills, Sobeys has FreshCo and Metro has Food Basics, for example. 

    Source: The Competition Bureau of Canada.

    How does Canada allow for three big grocers to reign? “The law in Canada typically will not allow the Bureau to intervene in these deals, as they are generally seen as unlikely to have a significant impact on prices and other dimensions of competition,” states a Competition Bureau report. “In the case of a major city or suburb, with five or six different grocery stores nearby, it can be hard to prove that removing one option will cause prices to go up significantly.”

    Another underlying issue is that, for many decades, the prevailing view was that “as a small, but large country, we need to accept lower levels of competition to achieve a scale that is necessary to serve the various markets,” says Keldon Bester, executive director of the Canadian Anti-Monopoly Project (CAMP). Over time, that belief has led to fewer and fewer options for consumers, he says.

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  • Oil prices are rising amid the Israel-Hamas conflict. Here’s what it means for U.S. drivers.

    Oil prices are rising amid the Israel-Hamas conflict. Here’s what it means for U.S. drivers.

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    Global oil prices are rising amid the conflict between Israel and Hamas, sparking fears the turmoil could spread across the Middle East and threaten the world’s oil supply. 

    Both U.S. and global oil futures traded roughly 4% higher at around $86 a barrel on Monday after Hamas militants attacked a rash of Israeli towns over the weekend during a major Jewish holiday, although crude oil was trading slightly lower early Tuesday. The fighting has raised concerns that oil could cross the $100 per barrel threshold, compared with its current level of about $86, according to S&P Global.

    While Israel is a small player in oil production, with just two oil refineries with a capacity of just under 300,000 barrels per day, the conflict risks involving other Middle East nations that are major producers, analysts noted. Of particular note is Iran, which U.S. and Israeli officials say is a primary supporter and funder of Hamas.

    Iran, however, has denied any involvement in the attacks, and the Biden administration has said that while Tehran is “broadly complicit” in supporting Hamas terrorism, it has seen no evidence of a direct Iranian role in planning or carrying out the recent attack on Israel.”

    The conflict could “become a wider conflagration,” drawing in the proxy agents of “Middle East regional players that are major oil exporters,” which could have an effect on oil prices, according to Alan Gelder, vice president of refining, chemicals and oil markets at energy research firm Wood Mackenzie. 

    “The most immediate market impact could be more stringent enforcement of [restrictions on] Iranian exports… by the U.S., if the conflict widens,” Gelder told CBS MoneyWatch.

    The combination of new U.S. sanctions against Iran, as well as risks to shipping and infrastructure across the Middle East, could put at risk about 500,000 barrels per day of Iranian oil exports, S&P Global said. That could be an issue given that global supplies of oil were tight even before the conflict, which means that any impact could ripple throughout the world economy.

    Will gas prices go up because of Israel?

    Iranian oil production has surged by 700,000 barrels per day as Washington relaxed its enforcement of sanctions against Tehran, CNN reported, citing Brussels-based think tank Bruegel. However, if Washington tightens sanctions against Iran, that could limit its petroleum output, potentially affecting global oil and gas markets, according to Tom Kloza, global head of energy analysis for the Oil Price Information Service.

    “Under some worried-about scenarios, tougher sanctions might suppress the growth in Iranian output we’ve seen so far in 2023,” Kloza told CBS MoneyWatch. “Under the most drastic circumstances, an Israeli attack on Iran might alter all the calculus for Middle East crude.”

    However, U.S. consumers may not notice much of an impact at the pump, at least in the short term, experts said.

    “Oil prices are up, but that’s much more a knee jerk reaction to the turmoil in the Middle East,” said Patrick De Haan, head of petroleum analysis at GasBuddy, told CBS MoneyWatch. “The major concern is … that Israel and Iran could get into conflict. That would be problematic [for U.S. gas prices.]”

    Even if oil prices continue to rise, the impact at the pump may be muted due to the seasonal dip in gas prices during the fall months, De Haan wrote on X, formerly known as Twitter. That’s because gas prices typically decline in the autumn, following a traditional summer bump caused by a surge in demand as more Americans take vacations and hit the road. 

    “Even if oil went back to $90, these pressures still will win the tug of war, for now,” De Haan wrote.

    Israel and gas prices

    More than half of all crude oil reserves are in the Middle East, according to current estimates from the Organization of Petroleum Exporting Countries. However, neither Israel nor the Palestinian territories are key oil producers, data from the Energy Information Administration shows. 

    Yet the conflict between Israel and Hamas recalls the Yom Kippur war of 1973, when Egypt and Syria launched a surprise attack on Israel, noted Charles Gave of Gavekal Research in a Tuesday research note. While Israel was victorious, Middle Eastern oil exporters responded by cutting production and imposing an oil embargo on the nations that had supported Israel, he noted. 

    “The price of oil shot up from US$3.50/bbl to more than US$10/bbl, setting off a huge wave of inflation in the West,” causing deep recessions and budget deficits, Gave wrote. “Today, with supply and demand in the global oil market tightly balanced, there is a risk that supporters of one side or the other could target regional oil production, processing or transport, creating a squeeze in the supply of oil.”

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  • Understanding the Latest Trends in the Global Energy Industry | Entrepreneur

    Understanding the Latest Trends in the Global Energy Industry | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    From the energy proposals in the Inflation Reduction Act to new concerns about fuel dependency following the war in Ukraine, it’s been a hectic couple of years for the energy industry, both in the United States and globally. There are several important current trends worth keeping an eye on in 2023 to see how the energy industry, particularly renewables, responds.

    Here are several of the most important trends I’ve noticed for renewable energy companies (and investors). These forces are having the biggest impact right now.

    Fuel costs remain high, with mixed results for renewables

    I expect fuel costs to remain very high, especially natural gas, coal and oil. Global prices have decreased somewhat in 2023, but reports still indicate that energy prices are hovering at an incredible 75% above the average heading into next year. Reasons for this include the war in Ukraine and sanctions against Russia, new geopolitical alignments that have cut oil production, and general high demand in many sectors.

    Some nations are focusing even more on fuel production as a result. United States’ natural gas production and exports have increased, for example. But these high prices have also pushed more investment in renewable energy and helped encourage removing some of the older barriers to development. If your renewable energy business is ripe for expansion or new partners, now is an excellent time to develop a proposal and focus on the need for energy independence, regardless of what’s happening in the world.

    That also means more competition for renewables, but there’s plenty of room for growth in many sectors and energy transition plans pick up steam.

    Related: 3 Ways to Make a Commitment to Sustainability Your Customers Want to See

    Energy storage heats up

    The continued growth of renewable energy in 2023 has also led to realizations worldwide that renewable energy storage hasn’t quite been keeping up with demand. In the United States, this trend with a renewed focus on batteries, from EVs to helping regulate solar systems across the country. Japan and China are also working on increasing battery availability.

    Batteries are only one part of the supply chain issue clean energy is seeing, albeit one of the most notable. But increased production following Covid-19 is helping reduce these tensions and improve production results. Manufacturers should start looking for better supply options if they’re struggling – things are improving!

    Related: Tesla is Quietly Working on a Project to Help Texas’ Power Grid

    The nuclear pendulum swings back up

    Nuclear energy has been an infuriating prospect for energy investors in recent years. It has the potential to fill an ideal niche in the renewables market and circumvents some of the steep problems involved in transitioning to clean energy. But the public generally hates it, and research is conducted at a snail’s pace. Also, renewed fears of nuclear attack or contamination in Ukraine have not been inspiring for the sector. But there’s also lots of good news.

    In 2023, nuclear may finally be ready to assume a key place in clean energy plans worldwide. Germany is rethinking after pulling back from nuclear power in recent years. New plants are being built in Georgia (U.S.), and American research continues to unveil new ways to make nuclear energy more efficient for older reactors and safer for newer models being planned. Turkey, Egypt and China are also investing in new nuclear plants as well. Now’s the time for nuclear to show the role it will take.

    States war between renewables and the old guard

    This trend is most noticeable in solar states like California and Florida. Still, it is happening in many ways across the U.S. Existing power producers, fiercely protective of their rate management and grid operation, are lobbying hard to prevent consumers from benefiting from their solar use. That includes getting rid of credits from selling excess power and limiting future solar installation opportunities. This underlines the need for the renewables industry to spend time on representation and answering proposals like this with quick, decisive alternatives.

    Offshore wind is continuing its march in the United States, with wind companies looking to the 19 GW of offshore wind power working through the permitting phase in 2023. This will unleash a wave of new development in the coming years. Wind is just getting ready for a very eventful decade, but long-term planning is required.

    Related: Top Solar Energy Trends To Look Out For in 2023 and Beyond

    How clean hydrogen has new potential

    One exciting development I noted from the Inflation Reduction Act changes was a new emphasis on clean hydrogen. Also called green hydrogen, this type of hydrogen is safely produced and disposed of without creating a significant carbon footprint. It’s fairly rare in the United States, which uses mostly “gray” hydrogen production. But the IRA includes big tax credits for clean hydrogen, which will likely prompt a mass transition through the United States and open up many new opportunities for carbon reduction programs.

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    Abe Issa

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  • 3 reasons gas prices are climbing again

    3 reasons gas prices are climbing again

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    Drivers once again are feeling a pinch when fueling their vehicles, with the average price for a gallon of regular gasoline in the U.S. jumping to $3.82 a gallon, up nearly 30 cents from a month ago. 

    Even though prices are climbing everywhere, the steepest increases are in Midwestern states, which have seen their average gas price rise between 18 cents and 25 cents, according to AAA. The nation’s most expensive gas is in California and Washington state, where prices average $5.00 a gallon. The cheapest gas in the nation is in Mississippi, where the average price is $3.32 a gallon. 

    To be clear, gas prices today are nowhere near as high as they were in June 2022, when they reached a record high of $4.62 a gallon. Back then, gas prices across the nation were inching toward $5.00, cramping Americans’ summer travel plans. Rising gas prices played a major role in the surging inflation Americans experienced most of last year, according to data from the Federal Reserve Bank of Kansas City.

    The national average prices began falling in mid-August as the summer days winded down and drivers took to the road less. 

    Typically, when gas prices increase, the main culprit is the cost of oil. This month, however, oil prices are only part of the story. Here are three reasons gas prices are going up.


    Gas prices shot up with record-high temperatures, but relief could be on the way

    02:39

    Rising mercury

    July was one of the hottest months on record for many parts of the nation, including Arizona, Texas and New Mexico. Phoenix, for example, had a recordbreaking 31 straight days of 110 degrees during the day. 

    Such high temperatures meant oil refineries had to reduce their output, as many of them can only operate at temperatures between 32 and 95 degrees, according to CBS News senior transportation correspondent Kris Van Cleave. The reduced output sent gas prices higher, he said. 

    “Last month’s extreme heat played a role in the recent spike in gas prices due to some refineries pulling back,” Andrew Gross, AAA spokesperson, said in a recent analysis, adding that refineries are now starting to get back to their normal operations. 

    Rising oil prices

    Crude oil prices have recently hovered around $80 per barrel, up from around $70 a barrel a month ago. When global oil prices climb, gas prices typically follow suit. Oil prices are climbing in part because Russia, the world’s third-biggest oil producer, decided last month to cut production starting in August. 

    Analysts at investment bank UBS expect crude prices to increase $85 to $90 in coming months amid rising oil demand.

    Falling oil production

    Saudi Arabia, the second-largest oil producer, also cut its oil exports last month. It slashed production by 1 million barrels per day hoping to keep oil prices elevated. The kingdom said this week it would extend its reduced production until the end of September. 

    “This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” a Saudi Energy Ministry official said Thursday, adding that the cut “can be extended or deepened” if the need arises.

    The Saudis are particularly keen to boost oil prices in order to fund Vision 2030, an ambitious plan to overhaul the kingdom’s economy, reduce its dependence on oil and create jobs for a young population.

    —The Associated Press contributed to this report. 

    Khristopher J. Brooks

    Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.

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  • Saudi Arabia Is Slashing Oil Supply — And It Could Mean Higher Gas Prices For US Drivers

    Saudi Arabia Is Slashing Oil Supply — And It Could Mean Higher Gas Prices For US Drivers

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    FRANKFURT, Germany (AP) — Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude after two previous cuts to supply by major producing countries in the OPEC+ alliance failed to push oil higher.

    The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through next year.

    Calling the reduction a “lollipop,” Saudi Energy Minister Abdulaziz bin Salman said at a news conference that “we wanted to ice the cake.” He said the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”

    The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it, said Jorge Leon, senior vice president of oil markets research at Rystad Energy.

    The move provides “a price floor because the Saudis can play with the voluntary cut as much as they like,” he said.

    The slump in oil prices has helped U.S. drivers fill their tanks more cheaply and gave consumers worldwide some relief from inflation.

    “Gas is not going to become cheaper,” Leon said. ”If anything, it will become marginally more expensive.”

    FILE – Saudi Arabia’s Crown Prince Mohammed bin Salman meets with Secretary of State Mike Pompeo at Al Salam Palace in Jeddah, Saudi Arabia, June 24, 2019.

    That the Saudis felt another cut was necessary underlines the uncertain outlook for demand for fuel in the months ahead. There are concerns about economic weakness in the U.S. and Europe, while China’s rebound from COVID-19 restrictions has been less robust than many had hoped.

    Saudi Arabia, the dominant producer in the OPEC oil cartel, was one of several members that agreed on a surprise cut of 1.6 million barrels per day in April. The kingdom’s share was 500,000. That followed OPEC+ announcing in October that it would slash 2 million barrels per day, angering U.S. President Joe Biden by threatening higher gasoline prices a month before the midterm elections.

    All told, OPEC+ has now dropped production on paper by 4.6 million barrels a day. But some countries can’t produce their quotas, so the actual reduction is around 3.5 million barrels per day, or over 3% of global supply.

    The previous cuts gave little lasting boost to oil prices. International benchmark Brent crude climbed as high as $87 per barrel but has given up its post-cut gains and been loitering below $75 per barrel in recent days. U.S. crude has recently dipped below $70.

    That has helped U.S. drivers kicking off the summer travel season, with prices at the pump averaging $3.55, down $1.02 from a year ago, according to auto club AAA. Falling energy prices also helped inflation in the 20 European countries that use the euro drop to the lowest level since before Russia invaded Ukraine.

    The Saudis need sustained high oil revenue to fund ambitious development projects aimed at diversifying the country’s economy.

    The International Monetary Fund estimates the kingdom needs $80.90 per barrel to meet its envisioned spending commitments, which include a planned $500 billion futuristic desert city project called Neom.

    The U.S. recently replenished its Strategic Petroleum Reserve — after Biden announced the largest release from the national reserve in American history last year — in an indicator that U.S. officials may be less worried about OPEC cuts than in months past.

    While oil producers like Saudi Arabia need revenue to fund their state budgets, they also have to take into account the impact of higher prices on oil-consuming countries.

    Oil prices that go too high can fuel inflation, sapping consumer purchasing power and pushing central banks like the U.S. Federal Reserve toward further interest rate hikes that can slow economic growth.

    The Saudi production cut and any increase to oil prices could add to the profits that are helping Russia pay for its war against Ukraine. Russia has found new oil customers in India, China and Turkey amid Western sanctions designed to limit Moscow’s crucial energy income.

    However, higher crude prices risk complicating trade by the world’s No. 3 oil producer if they exceed the $60-per-barrel price cap imposed by the Group of Seven major democracies.

    Russia has found ways to evade the price cap through “dark fleet” tankers, which tamper with location data or transfer oil from ship to ship to disguise its origin. But those efforts add costs.

    Under the OPEC+ deal, Russian Deputy Prime Minister Alexander Novak said Moscow will extend its voluntary cut of 500,000 barrels a day through next year, according to Russian state news agency Tass.

    But Russia might not be following through on its promises. Moscow’s total exports of oil and refined products such as diesel fuel rose in April to a post-invasion high of 8.3 million barrels per day, the International Energy Agency said in its April oil market report.

    AP reporter Fatima Hussein contributed from Washington.

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  • Italy leads revolt against Europe’s electric vehicle transition

    Italy leads revolt against Europe’s electric vehicle transition

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    Milan — Italy’s nationalist government is leading the revolt against European Union plans to tighten vehicle emissions limits, vowing to defend the automotive industry in a country still attached to the combustion engine. Prime Minister Giorgia Meloni’s far-right coalition, which came into office last October, tried and failed to block EU plans to ban the sale of new cars running on fossil fuels by 2035, which her predecessor Mario Draghi had supported.

    But this week the government shifted its fight to planned “Euro 7” standards on pollutants, joining seven other EU member states — including France and Poland — to demand Brussels scrap the limits due to come into force in July 2025.

    “Italy is showing the way, our positions are more and more widely shared,” said Enterprise Minister Adolfo Urso, a fervent defender of national industry in the face of what he has called an “ideological vision” of climate change.

    The EU plan “is clearly wrong and not even useful from an environmental point of view,” added Transport Minister Matteo Salvini, leader of the far-right League party, which shares power with Meloni’s post-fascist Brothers of Italy.

    Salvini led the failed charge against the ban on internal combustion engines, branding it “madness” that would “destroy thousands of jobs for Italian workers” while benefiting China, a leader in electric vehicles.


    Chinese car exporters push to compete with Western car makers with electric vehicles

    02:24

    Federico Spadini from Greenpeace Italy lamented that “environmental and climate questions are always relegated to second place,” blaming a “strong industrial lobby in Italy” in the automobile and energy sectors.

    “None of the governments in recent years have been up to the environmental challenge,” he told AFP.

    “Unfortunately, Italy is not known in Europe as a climate champion. And it’s clear that with Meloni’s government, the situation has deteriorated,” he said.

    Jobs “orientated towards traditional engines”

    In 2022, Italy had nearly 270,000 direct or indirect employees in the automotive sector, which accounted for 5.2 percent of GDP.

    The European Association of Automotive Suppliers (CLEPA) has warned that switching to all electric cars could lead to more than 60,000 job losses in Italy by 2035 for automobile suppliers alone.

    “Since Fiat was absorbed by Stellantis in 2021, Italy no longer has a large automobile industry, but it remains big in terms of components, which are all orientated towards traditional engines,” noted Lorenzo Codogno, a former chief economist at the Italian Treasury.

    “Extremely behind”

    For consumers too, the electric revolution has yet to arrive.

    Italians are attached to their cars, ranking fourth behind Liechtenstein, Iceland and Luxembourg with 670 passenger cars per 1,000 inhabitants, according to the latest Eurostat figures from 2020.

    But sales of electric cars fell by 26.9 percent in 2022, to just 3.7 percent of the market, against 12.1 percent for the EU average.

    Europe To Ban The Sale Of New Gasoline And Diesel Vehicles From 2035
    A man plugs in his electric car to charge in L’Aquila, Italy, February 16, 2023.

    Lorenzo Di Cola/NurPhoto/Getty


    Subsidies to boost zero emissions vehicles fell flat, while Minister Urso has admitted that on infrastructure, “we are extremely behind.”

    Italy has just 36,000 electric charging stations, compared to 90,000 for the Netherlands, a country a fraction of the size of Italy, he revealed.

    “There is no enthusiasm for electric cars in Italy,” Felipe Munoz, an analyst with the automotive data company Jato Dynamics, told AFP. “The offer is meagre, with just one model manufactured by national carmaker Fiat.”


    New etiquette developing for charging electric vehicles

    08:03

    In addition, “purchasing power is not very high, people cannot afford electric vehicles, which are expensive. So, the demand is low, unlike in Nordic countries.”

    Gerrit Marx, head of the Italian truck manufacturer Iveco, agrees.

    “We risk turning into a big Cuba, with very old cars still driving around for years, because a part of the population will not be able to afford an electric model,” he said.

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  • Arizona drivers experiencing unusually high gas prices

    Arizona drivers experiencing unusually high gas prices

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    Arizona drivers experiencing unusually high gas prices – CBS News


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    The average price of a gallon of regular gas in Arizona is over $1 more than the national average. Kris Van Cleave examines why this is the case.

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  • Arizona drivers contend with unusually high gas prices

    Arizona drivers contend with unusually high gas prices

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    Arizona experiencing unusually high gas prices


    Arizona drivers experiencing unusually high gas prices

    01:54

    Phoenix, Arizona — Pain at the pump seems to be punishing the Grand Canyon state.

    While the national average for a gallon of regular was $3.63 Friday, according to daily numbers released by AAA, in Arizona it was $1 more, at $4.70. In the Phoenix metro area, the average is just over $5 a gallon.

    “Before, it used to cost us probably $80 to fill up, and now it’s almost double that,” Phoenix driver John Baker told CBS News.

    Baker said his family is cutting back elsewhere, fearing $5 gas could be here to stay.

    “We don’t really go out nearly as much as we used to,” Baker said. “We used to go to the movies on the weekends as a family. Now we just stick to the swimming pool.”

    Two hours south of Phoenix, in Tucson, gas prices jumped more than 80 cents per gallon in just the last month, now averaging $4.73 a gallon.

    Experts said the rapid spike amounts to bad timing.

    “They get their gas primarily from a refinery in El Paso,” AAA national spokesperson Andrew Gross said. “That refinery is down for maintenance. So, they’re having to bring in more expensive gas from other places.”

    This also comes as refineries switch to more expensive summer blends, while OPEC cuts oil production globally. That is on top of increased driver demand for fuel during the summer months. 

    While still expensive, AAA predicts the rest of the U.S. won’t see prices climb quite as high as last summer’s record.

    “For the national average, I don’t think we’re going to see it reach $4 (per gallon),” Gross said. 

    But for Arizona drivers, $4 a gallon would be a summer dream come true. 

    Kris Van Cleave


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    Kris Van Cleave is a congressional correspondent for CBS News based in Washington, D.C.

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  • OPEC announces cuts to oil production

    OPEC announces cuts to oil production

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    OPEC announces cuts to oil production – CBS News


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    OPEC unexpectedly announced cuts to oil production. The move will likely increase the price of gas.

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  • Here’s what OPEC’s shock oil production cuts mean for U.S. gas prices

    Here’s what OPEC’s shock oil production cuts mean for U.S. gas prices

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    Oil markets shuddered after a surprise announcement this weekend that Saudi Arabia and other oil-producing countries would cut their output of crude oil, potentially pushing up gas prices just as millions of Americans hit the road this summer.

    With the price of Brent crude, the international oil standard, jumping about 6% to $85 a barrel on Monday, motorists should expect prices at the pump to rise between 5 cents and 15 cents per gallon within the next two weeks, analysts told CBS MoneyWatch. By summer, the average national price for regular gas is likely to be around $4 a gallon.

    If the price of crude stays at or above $80 a barrel, “we could see the national average price move in the 8-to-12 cent range, and we haven’t seen it yet,” AAA spokesperson Andrew Grossman said. 

    The cost of crude accounts for about half of the overall price of gas, according to the Energy Department. From Sunday to Monday, average gas prices stayed steady at $3.50 a gallon, according to AAA, but Grossman said prices could increase by 5 or 10 cents by the end of the week. 

     For drivers, “the initial effect will be limited to a ballpark of 5-15c/gal,” Patrick De Haan, head of petroleum analysis at GasBuddy, said on Twitter.

    Gas prices soared to an average of $5.02 in June of 2022, stoked by the war in Ukraine, with prices at the pump in California soaring well above $6. But prices fell steadily in the ensuing months as global crude costs sank, shell-shocked motorists cut back on driving and U.S. refineries upped their oil production. 

    Seasonal effects

    Grossman said gas prices this time of year typically hover between $2 and $3.50 per gallon. That puts the current national average at the high end of the typical range, which he attributes to the higher driving demand because of the unusually warm spring in many parts of the country.

    Gas prices usually rise about 30 cents a gallon between spring and summer, Kevin Book, managing director of Clearview Energy Partners, told CBS News. That’s because gas sold in summer is required to have a less polluting, and more expensive, formulation, and Americans drive the most when it’s warm. 

    However, Book and other analysts cautioned that OPEC’s announcement could turn out less impactful than feared. Last fall, the oil cartel announced a production cut of 2 million barrels per day, but the actual cut turned out to be just half that. 

    “This is just an announcement,” AAA’s Grossman added. “Will the size of the cut really be a million [barrels per day] plus or will it be something less? That’s entirely possible. They have a month to figure out what they really want to do.”

    Pricing in the effects of more expensive crude oil and a seasonal 30-cent swing could bring the national average gas price to roughly $3.95 a gallon by the summer. Whether prices crack $4 also depends on how much Americans drive, and for now the trends in this area are pointing lower. 

    “Right now, U.S. gasoline demand is down 4.5 % from 2019 levels, but diesel demand is down 13%,” Troy Vincent, senior market analyst at DTN, told CBS MoneyWatch. 

    That’s in line with most economists’ expectation that the U.S. is likely to enter a mild recession later this year.

    “If you’re assuming demand [for gasoline] doesn’t change but supply now does, then it means higher price — but I don’t think it’s that simple,” he said. “You can’t look at the balance sheet without looking at the demand side as well. Demand has been weak for refined fuels and is likely to get worse.”

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