Tags: gasoline | prices | exported | overseas

Gasoline Prices Are Rising, While Fuel is Being Exported

By    |   Tuesday, 22 April 2014 12:27 PM

U.S. gasoline prices are increasing while refiners are sending more gas overseas. That could be a recipe for still higher gas prices.

The price of regular gasoline averaged $3.67 a gallon Tuesday, up from $3.53 a month ago and $3.52 a year ago, according to auto club AAA.

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A new pipeline is helping more oil go to Gulf Coast refiners that produce gasoline and diesel, The Wall Street Journal reports. While some of that product stays in the Southeast and East Coast, more is going overseas to nations including Mexico, the Netherlands and Brazil.

Fuel demand in the U.S. isn't very strong, giving refiners an incentive to sell overseas.

"Quite frankly, this is not just a U.S.-centric topic anymore," Nancy White, a spokeswoman for AAA told The Journal. "Production is going overseas, so that impacts the supply here, and that will drive prices up."

U.S. gas supplies have slumped to their lowest level for this time of year since 2011, according to the U.S. Energy Information Administration. Meanwhile, total petroleum exports, mostly gasoline and diesel, have risen 25 percent from last year.

Trilby Lundberg, president of petroleum-research firm Lundberg Survey, told Bloomberg News that "the most important factor right now in this rise [of gas prices] is crude oil, which rose by a very similar amount to the street-price move.

"From here, we will probably see very little increase [in gas prices], if any, with the big caveat being crude. If crude prices climb even higher, then this may not be the peak."

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U.S. gasoline prices are increasing while refiners are sending more gas overseas. That could be a recipe for still higher gas prices.
gasoline, prices, exported, overseas
273
2014-27-22
Tuesday, 22 April 2014 12:27 PM
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