When we thought that this matter was going to give us a break, gasoline goes up again. The average price of regular fuel, according to AAA’s calculation, rose to $4,328 per gallon this Monday, dangerously close to the historical maximum reached on March 11, $4,331.
The rise, above the average of $4,194 last week and far from the $2,962 of a year ago, also coincides with a black day for the stock markets.
And what the experts say is that, in the short term, we must prepare for more climbs since that is what the futures markets indicate.
Everything, despite the fact that this Monday the price of crude oil fell 5% due to the contraction in Chinese demand, which is still immersed in massive confinements due to its zero covid policy and the rises in interest rates in the US, which they seek a cooling of the world’s largest economy.
Is gasoline near the all-time high?
The answer to whether gasoline is near its all-time high is yes (nominally) and no (adjusted for inflation).
In the first week of July 2008, the Energy Information Administration (EIA) estimated that the national average price per gallon reached $4,114, an all-time high since it began keeping these records in August 1990.
That record was broken, also according to the EIA, between March 7 and 14, when the national average price of a gallon of gasoline it came to $4,315.
But the EIA makes its estimates based on weekly averages. By day, the reference source is Triple A, which calculated the all-time high of $4,331 for March 11.
Of course, as we say, it is a nominal historical maximum, since the price of 2008 adjusted to current inflation, would be $5.33, according to the EIA.
With the covid-19 pandemic further and further behind, the strong demand that the economic reactivation brought caused tensions in gasoline prices already before the start of 2022.
And the invasion of Ukraine ordered by Russian President Vladimir Putin only made things worse. Russia is one of the world’s largest oil producers and exporters.
The objective, in the midst of escalating inflation, was to control fuel prices.
Now it seems that as the experts intuited at the time, it will not be enough. Although it has served to control prices, demand continues to exceed inventory of refined products.
Less with the European Union discussing the inclusion of Russian oil in its already long list of sanctions against Moscow.