Gasoline Prices Poised to Rise as Refineries Undergo Maintenance and Demand Increases

Gasoline prices are expected to surge in the coming weeks as the impact of refinery maintenance and outages, especially in California, ripples through the market. The national average price for gasoline currently hovers around $3.16 per gallon, up $0.04 from last month and $0.11 lower than a year ago.

Maintenance and Outages Fuel Price Increases

Planned seasonal refinery maintenance has constrained supply, while a fire at the Martinez refinery in Northern California has forced the shutdown of its operations. These disruptions have created a ripple effect, pushing prices higher in neighboring states.

Summer Fuel Blends Add to Costs

The annual switch to more expensive summer fuel blends will further contribute to the price increase. California, which already has the highest gasoline prices in the US due to green initiatives, has seen its average jump $0.41 over the past month to $4.85 per gallon. Other Western states are also experiencing significant increases.

Analysts Forecast Further Price Hikes

Analysts anticipate that the national average for gas will rise by $0.25 to $0.60 by mid-April, with the West Coast likely to experience the highest increases. However, retail gas prices are expected to decline in the second half of the year.

Global Oil Market Dynamics at Play

Oil futures have surged 1% on Wednesday as delegates from OPEC and its allies consider delaying their output increase for a fourth time. The potential easing of sanctions on Russia could also impact oil prices.

Demand Concerns and Trade War Fears

Demand worries amidst the tariff-induced US-China trade war have weighed on prices. Goldman Sachs forecasts that prices may fall in the medium term due to its potential negative impact on global GDP and oil demand.