Gas prices are climbing again as uncertainty surrounding the fragile U.S.-Iran ceasefire keeps energy markets on edge.
The national average for a gallon of regular gasoline rose 5 cents overnight to $3.84, reversing a steady decline that had been underway since late May. While prices remain well below this spring’s peak of $4.56 on May 21, analysts warn motorists could see additional increases if tensions continue around the Strait of Hormuz, a key global oil shipping route.
Crude oil is trading in the low $70-per-barrel range, with West Texas Intermediate settling Wednesday at $73.52 after gaining more than $3.
According to the U.S. Energy Information Administration, gasoline demand slipped last week from 9.13 million barrels per day to 8.84 million, while domestic gasoline supplies fell from 214 million barrels to 212.1 million. Gasoline production also declined, averaging 9.7 million barrels per day.
Meanwhile, U.S. crude oil inventories increased by 3 million barrels to 411.4 million barrels, though stockpiles remain about 6% below the five-year average for this time of year.
Drivers in Rhode Island are paying an average of $3.77 per gallon, slightly below the national average. In Florida, the average price stands at $3.80 per gallon.
Hawaii continues to have the nation’s highest gas prices at $5.46 per gallon, followed by California at $5.38. At the other end of the spectrum, Indiana has the lowest average at $3.21, with Oklahoma and Texas close behind.
The national average now stands at $3.846 per gallon, compared with $3.838 a week ago, $4.161 a month ago and $3.163 one year ago.
