US: rising gasoline prices could soon be out of steam image

Auto sales across the US have been positively boosted by the cheap gasoline prices seen since the second half of last year, but recently the level of gas price had been rising slightly every week.

According to the AAA, the gas price has been inching higher again this week, reaching an average of $2.66 per gallon – the highest so far this year. But fret not, the steady increase is forecasted to soon come to an end as the rally cry that has increased crude oil prices at global level is blowing off. US drivers have been paying on average around four cents for each gallon of gasoline compared to last week, while the month-ago level was around 27 cents lower. Nevertheless, from the year-ago period the difference is entirely favorable, with prices now about a dollar lower across the nation and at the lowest level for the period since 2009, the motoring association added. On a monthly basis, prices are up by a dime or more in every state and by a quarter or more in 22 states – the biggest monthly rise can be seen across western states. California with 61 cents per gallon, Nevada with 44 cents, Utah with 39 cents and Arizona with 39 cents have registered the strongest price increases.

The higher price is attributable to refinery issues in some states, while the price of crude oil on a worldwide level has also moved up since the second half of March because of lower US production, the weaker US dollar and speculation that China would need less oil this year. But most market analysts and industry experts believe the upward movement is coming to an end and oversupply remains high, ensuring a cap over the price’s highest point.