Crude oil prices have surpassed $90 a barrel and the statewide average price for a gallon of regular gasoline has reached $3.23, according to AAA. The International Energy Agency is releasing 400 million barrels of oil from strategic reserves, but LSU Center for Energy Studies director Greg Upton says that will not help with gas prices, instead it will ease short-term supply disruption.
“It’s really the ability, in order to make sure that your refineries have access to that oil in order to produce those products, like liquid fuels, that we need to run our economy in the short run,” Upton said.
Diesel now costs on average $4.55 a gallon, according to AAA.
“So I would really view these kinds of strategic petroleum reserve releases as more of a strategic response, in order to make sure specific facilities have access to feed stocks during these disruptions,” Upton said.
As a result of the war with Iran, gas prices are up 70¢ over the last month. Upton expects to see high gas prices through the summer.
“That price is plausible to persist through the summer months, in which you typically see a higher price, and then probably come down in the fall,” Upton noted.
Comments