Gas prices to remain high post midterms
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Gas and diesel prices will remain elevated regardless of the 2022 midterm election results, according to an industry analyst.
"No matter tonight's election results: #GasPrices will remain above average, since politicians are not the active reason they're above average," Patrick De Haan, head of petroleum analysis at GasBuddy, tweeted Tuesday.
De Haan further noted that diesel prices will also "remain historically high, since politicians are not the active reason they're historically high," The oil and refined products analyst cited various reasons of why pump prices remain high, including the coronavirus pandemic and geopolitical tensions.
AMERICANS SHOULD PREPARE FOR GAS PRICES TO KEEP RISING, ANALYSTS WARN
AAA reports that the national average price of regular gasoline as of Wednesday is $3.80 per gallon. That's four cents higher than a week ago and nearly 40 cents more than a year ago. Still, it's well below the record of $5 per gallon, which was reached in early June.
The elevated gas prices have been a hurdle for the Biden Administration ahead of the midterm elections, but analysts have argued there are many factors weighing on pump prices including Russia's war on Ukraine and the decision by OPEC+ to sharply cut production by 2 million barrels per day starting in November.
GAS PRICES RISE AND HIT $3.91 PER GALLON
"OPEC+ recent cut in production quotas has contributed to tighter supplies," Lipow Oil Associates President Andy Lipow told FOX Business.
At the same time, the European Union plans to enact a ban on the purchase of Russian crude oil by early December, according to Reuters. This will add "to refiners difficulties to secure oil to meet the consumer demand," Lipow added.
Crude oil accounts for over half of what consumers pay at the pump, according to the U.S. Energy Information Administration (EIA). When oil supplies get interrupted, it's likely that pump prices will increase.
The group's latest weekly petroleum report showed gasoline production increased last week, averaging 9.8 million barrels per day. Distillate fuel production increased last week, averaging 5.2 million barrels per day.
Another factor keeping pump prices "stubbornly high" are the refinery outages in the Midwest and West Coast. Those outages "have impacted supply at the same time that nationwide inventories have been drawing and are now 4% lower than a year ago," Lipow added.