Oil price surge leads to highest gas prices in months

According to Triple A, the average gas price right now is $3.60 per gallon, but analysts are warning that could start to creep higher.

Though it feels like spring has just arrived, the summer travel season is right around the corner. As school lets out, drivers will be hitting the road for vacations, family get-togethers and graduations.

And leading into the summer travel there's one question that is always on people's mind: What will gas prices look like?

Prices enter an upward trajectory simply based on demand in the spring and summer, said AAA North East spokesperson Mark Schieldrop, starting to increase late winter and ramping up in the spring before peaking in mid-June. After this point they typically stabilize before lowering in the fall.

Based on current projections, Schieldrop believes this year that the fuel gouge will not be a price gauge for New England drivers.

"(Prices) should stay where they are before rising about 30 to 40 cents in the next couple months, assuming steady increase in demand with summer driving season," he said.

Massachusetts gas prices as of April 23 average $3.574, according to AAA. The national average is $3.667.

Schieldrop qualified that hard numbers are tricky to come by, as the oil and gas markets are commodity-based, which means prices are determined through anticipation of changes in supply and demand.

As a result, the "market can be emotional and reactive," said Schieldrop, such as rising in responses to geopolitical tensions in oil-producing countries.

Though there was initial concern following the drone attacks against Israel by Iran, Schieldrop said he has not seen prices rise due to the news. Part of that, he said, is due to a particularly high domestic inventory in the New England region.

"If anything, oil prices have been falling and that helps," he said. Oil is trading below $90 a barrel, which is on the low side and good for drivers, as the price of oil directly impacts the price of gas.

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"We have more in reserve than we had last year," he said. Which means there is no danger of a supply crunch in the Northeast driving up prices.

Not only that, but demand is actually trending behind numbers from this time last year. Naturally, this will change as the season progresses; however, there is "room for demand growth without impacting inventories." This translates to a buffer for increased demand this summer without raising prices.

This isn't to say you're completely at the mercy of forces outside your control when it comes to lowering your gas expenses. There are still things you can do while driving to maximize fuel economy.

Barring a summer scorcher, take a moment to consider if you really need that air conditioning for the whole trip. Air conditioning consumes gas, so try to open the windows first.

Also, being a speed demon can add up, so avoid hard acceleration and braking whenever possible, according to Consumer Reports. Once you reach the desired speed, drive evenly – smooth driving, acceleration and braking all help conserve fuel.

With any luck, this news means that the gas mileage won't take too much of a bite out of your travel budget this summer, whether it's going to see mom for Mother's Day or that long-awaited post-graduation road trip.

News Source : https://www.patriotledger.com/story/news/2024/04/26/ma-gas-prices-under-national-average-but-expected-to-rise-this-summer/73440308007/