Prices on the pump in the US hit an eight-month high this week — boosted by the increased cost of crude oil as producers slash output.
Based on roadside assistance company AAA, as of Friday, the common national gas price is $3.73 per gallon for normal gas — up 20 cents from last month’s average.
The more fuel-efficient premium gas, meanwhile, has surged to almost $4.50 — also a 20-cent increase from June.
California’s average is the very best, at $4.95 per gallon of normal gas. In counties like Mono, for instance, positioned just outside Yosemite National Park, the value per gallon has soared to an eye-watering $6.05, in response to figures by AAA.
AAA spokesman Robert Sinclair cited OPEC+’s July 1 decision to slash crude oil production to three.6 million barrels per day — “3.6% of total each day global production of 100 million barrels,” Sinclair said.
The voluntary cut is being implemented on top of a broader deal by the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia to limit supply into 2024 as the OPEC+ producer group seeks to spice up flagging oil prices.
OPEC+, which groups OPEC and allies led by Russia, pumps around 40% of the world’s crude — which is used to make petroleum — meaning its policy decisions can have a significant impact on oil prices.
“It may very well be said the production cut chickens have come home to roost,” Sinclair told The Post.
![Prices at the pump in the US hit an eight-month high this week, to $3.73 per gallon of regular gas. California's average is the highest, at $4.95 per gallon of regular gas.](https://nypost.com/wp-content/uploads/sites/2/2023/07/NYPICHPDPICT000015164574.jpg?w=1024)
Saudi Arabia also pledged to chop production by an additional 1 million barrels per day as of July — the dominion’s harshest reduction in years.
“Nearly 4% of each day output being cut has led to increased crude and gasoline prices, despite less-than-robust summer demand in the US,” Sinclair said.
Over the past month, US West Texas Intermediate crude has climbed nearly 13%, to $79.56.
Brent crude futures were up this past month about 11%, at $82.33 a barrel.
Refinery utilization, which measures how much crude oil refineries are processing, can also be down, which Sinclair ascribed “to excessive heat” that has been affecting two-thirds of the US across two dozen states this month.
Sinclair, who oversees America’s Northeast region at AAA, noted that a “local refinery n Latest Jersey was offline for some time.”
He was referring to the Bayway Refinery, a 150,000-barrel-per-day oil refinery owned by Phillips 66. It’s the most important gasoline-making unit in the Western Hemisphere, and was offline for many of June and July for unplanned repairs, in response to Reuters.
“It was presupposed to be restarted in the last week or so,” Sinclair said, suggesting it’s still closed.
The Post reached out to Bayway Refinery to inquire, and its community hotline confirmed that as of July 16, it was still offline for repairs.
As for the long run, Sinclair said it’s possible Americans may very well be in for one more 25-cent increase.
“The main X factor is a hurricane hitting the oil infrastructure of the Gulf Coast. That might send prices soaring overnight,” he said. “And with water temperatures around Florida at 100 degrees, the potential of the formation of a significant storm is increased.”
High gas prices — together with Russia’s invasion of Ukraine — have prompted the US to begin moving away from fossil fuels.
![The surge could be attributed to a decrease in oil production as of July 1, when OPEC+ and Saudi Arabia slashed production by 3.6 million and 1 million barrels, respectively.](https://nypost.com/wp-content/uploads/sites/2/2023/07/NYPICHPDPICT000014720878.jpg?w=1024)
A protracted-term projection published by the International Energy Agency in November said oil demands could level off in the 2030s.
Because the world becomes less depending on hydrocarbons, oil demand in 2024 will fall to half the speed seen in the past two years.
Barrel needs are projected to nosedive from 2.5 million a day in 2023 to 860,000 next yr — and then to a tepid 400,000 in 2028, the IEA told Bloomberg last month.
The identical yr, the agency sees the necessity for flamable fossil fuels hitting an absolute peak of 81.6 million barrels a day, the outlet reported.