Despite a decrease in demand, the cost of gasoline in the Bayou State jumped up fifteen cents since last week. Today’s statewide average price for a gallon of regular gasoline is $3.36 according to AAA. Fuel analyst Don Redman says crude prices and other factors are pushing prices higher.
“It’s more of a case that you’re seeing a weakening dollar which of course pushes the price of crude up. There’s no doubt that it’s a sign of weakening supply.”
Crude oil prices were down at 67 dollars a barrel last month. Redman says oil-producing countries recently agreed to hold back oil production on crude driving prices higher.
“Other oil-producing countries that are aligned with OPEC have also been cutting back production and that was something that was put into place a couple of months ago. It’s taken that long to work through the market.”
Redman says the current average is less than this time last year’s price at $3.89. He says scorching temperatures have forced refineries to slow down and motorists to travel less…
“Refinery capacity has absolutely slowed down because of the higher heat but that’s also one of the reasons that there’s less demand. People aren’t traveling right now or they’re not traveling as far or staying as long because of the heat.”
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