Oil Prices increase by 4%

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Gas prices are hitting new post-pandemic highs across the country, but this isn’t a story of America reopening.  Earlier this week, gas prices hit an average of $2.71/gallon, their highest level since 2019.

It’s really just a function of the price of oil going up.

By the numbers: Gasoline cost $2.71 on average as of Monday, per the Energy Information Administration. The highest average price was $3.59 in Los Angeles, while the lowest was $2.33 in Houston.

  • All of these prices represent the highest level seen since 2019.

The big picture: The price of crude oil reflects more than half of the cost of a gallon of gasoline. (The rest is refinery costs, distribution costs, and taxes.)

  • Demand for oil has actually been declining, per the New York Fed, but supply has been falling even faster, with the result that prices have now topped $64 for a barrel of Brent crude.
Source: AXOIS
Link: https://www.axios.com/gas-prices-up-why-6db6d740-28dc-4f48-9eec-6f4aba4d571d.html?utm_source=morning_brew
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