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IPFS News Link • Oil

Gas Prices Hit New Yearly High, Driven by Cost of Crude Oil


Crude oil passed $70 a barrel, the highest price since October 2018, according to the American Automobile Association (AAA). Price per barrel has jumped $23 per barrel since January.

The rising cost per gallon of gas stems from the climb in crude prices, especially in light of falling demand and increasing supply, the group said.

"Motorists are paying, on average, 37% more to fill up than the start of the year," Jeanette McGee, an AAA spokesperson, said in a statement.

"Prices for the rest of the month are likely to push more expensive, but if crude production increases, as forecasted, there is the possibility of seeing some relief at the pump later this summer."

The U.S. Energy Information Administration is forecasting that rising global production of gas and other fuels will limit price increases for both WTI and Brent crude oil. U.S. production is projected to increase along with global output.