The national average price of gas continues to increase, reaching today’s average of $2.37 per gallon, the most expensive average since June 2016 according to AAA.
Gas prices have moved higher by three cents per gallon on the week and 17 cents per gallon on the month. Retail prices have increased for 40 of the past 42 days as a result of market reactions to the OPEC oil cut agreement. Traders and industry alike will keep a close eye on OPEC compliance as they await the release of the first output report which is expected in mid-February.
California
A number of refineries in California had challenges over the past week, including a power outage at Phillips 66’s Wilmington refinery last Thursday. The company’s Carson refinery has experienced reduced runs due to issues with the crude oil distillation unit’s heater that have been ongoing since November. Tesoro’s Los Angeles refinery is believed to be planning turnaround activity on a coker unit, hydrotreater and hydrocracker unit during January and February, while flaring activity was reported at Chevron’s Richmond facility, Phillips 66’s Rodeo plant and Shell’s Martinez refinery. OPIS also reports that Valero’s Benicia, California refinery is planning maintenance on a crude distillation unit heading into February.
Reduced gasoline production in the state has historically led to price spikes based on the region’s relative isolation from other markets. States in the region continue to post some of the nation’s highest averages at the pump: Hawaii ($3.03), California ($2.81), Alaska ($2.74), Washington ($2.73) and Oregon ($2.55).
Local Gas Prices:
Antioch:
- $2.49 – Costco (Verne Roberts & Crow Ct.
- $2.54 – Safeway (Deer Valley & Hillcrest)
Brentwood
- $2.49 – Quick Stop (Walnut & Dainty)
- $2.51 – Arco (Balfour & John Muir
Oakley
- $2.49 – Arco (Main St & W. Cypress)
- $2.52 – Arco (Bridgehead & Main St)
Pittsburg
- $2.49 – Bonfare (Railroad & Marks)
- $2.49 – Arco (W. Leland & San Marco)
Oil Market Dynamics
Early Monday morning crude oil prices traded lower as a result of increased Iranian oil exports and reports of increased U.S. drilling. In an effort to capitalize on OPEC production cuts and gain market share, Iran has sold more than 13 million barrels of oil in the last three months. Also impacting markets are reports of increased U.S. rig counts. According to a report from Baker Hughes, U.S. drillers added four more rigs, bringing the total U.S. rig count to 529. Increased oil production by the U.S. may keep a temporary cap on prices, but traders will continue to monitor how OPEC cuts and increased Iranian exports impact the market. At the close of Friday’s formal trading session on the NYMEX, WTI closed up 23 cents to settle at $53.99 per barrel.
Source:
http://gasprices.aaa.com/national-average-increases-highest-price-since-june/
