Gas queues in America
Global refineries are facing a crisis in fuels, especially gasoline, which has led to a price hike before the summer season, as car travel increases. Consequently, retail gasoline prices in the United States rose today, Tuesday, to a new record, exceeding the record set in March.
The American Automobile Association said the average retail price per gallon was $4,374 early Tuesday, beating the previous record of $4,331.
Since March 30, Brent crude futures have lost 7 percent, but gasoline futures rose 9.4 percent, hitting a record on Friday of $3.7590 a gallon before selling on Monday.
Refinery closures due to pre-scheduled maintenance and unrest have pushed up fuel prices even as the United States and other countries take steps to boost crude supplies around the world.
Global fuel stocks are dwindling as demand recovers to pre-pandemic levels. Supplies became even more tight in the wake of the invasion of Ukraine and subsequent sanctions on Russia from the United States and its allies.
The world has lost 1 million barrels of refining capacity and 1.5 million barrels of oil supplies since the pandemic, according to estimates provided by Mike Jennings, CEO of Sinkiller Corp., on Monday.
“That’s 2.5 percent of global consumption, it’s a big number,” Jennings said.