Monday, 21 May, 2018

Mass. Gas Nearly 50 Cents Above Last Year's Price

Crain's Detroit Business	
           Michigan's average price for gasoline remained steady at $2.85 per gallon Crain's Detroit Business Michigan's average price for gasoline remained steady at $2.85 per gallon
Leonard Rios | 08 May, 2018, 01:05

"If this past week's moderate increases are any indicator of what's to come, the fast rate at which gas prices were increasing may be slowing down", said Jeanette Casselano, AAA spokeswoman. The threat that the president may pull out of the Iran treaty and reimpose sanctions against the Islamic Republic could push oil up by as much as $10 a barrel. A year ago at this time, the average price in MA was 47 cents lower at $2.29.

Oil prices topped $70 a barrel Monday for the first time since November 2014 because traders expect the Trump administration to reimpose USA sanctions on Middle East crude producer Iran. "Gas prices were relatively stagnant last week, but we could see a slight boost, based on oil price gains last week and the potential for additional hikes in the coming days". Crude oil exports topped 2 million barrels a day for the second straight week.

Gasoline inventories nationwide are recovering from record-high demand in April - and the national average gas price held steady for the week, as the spike in USA pump prices appeared to temporarily level off. The Detroit area's average was about $2.87. Refineries are now federally-mandated to produce the more expensive summer-blend gasoline. Consumers could face the most expensive driving season in four years or since 2014, according to AAA.

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Gasoline prices in MA are up one cent this week, according to AAA Northeast. At 62 million barrels total, mid-Atlantic and Northeast inventories are at their highest levels in almost two months. USA gasoline prices, already near the highest level since November 2014, are likely to push even closer to the $3 a gallon mark as the futures market rally filters through to the retail level.

In Greater Springfield, a gallon of regular averaged $2.81 Monday. A year ago, the state average was $2.52. Gas prices will eventually follow in the weeks following, whichever way oil moves.

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