Fuel prices continue to rise, while US oil exports continue to rise

Gas price relief for U.S. consumers will not come soon, as summer travel and winter diesel demand in South America are already square in an area full of perforated logistics and ongoing inflation. Although gas prices have stopped rising sharply since Russia’s invasion of Ukraine, the national average has risen an additional 50 0.50 since a month ago.

Travel is expected to recover significantly this summer as most of the country has made a conscious decision to hold back the Kovid era, especially despite warnings from urban municipalities that the risk of exposure and infection is high in populated areas and indoor areas. As of Wednesday, the national average price for a gallon of unleaded regular was $ 4.59 and the price Per AAA shows above the US state average of $ 4.00 / gallon.

In April, 2.09 million barrels of gasoline, diesel and jet fuel were shipped daily from the U.S. Gulf Coast. Bloomberg The report goes mostly to Latin America, where the demand for diesel fuel will be higher in the winter of the Southern Hemisphere. Mexico is expected to be a leading consumer for American diesel, which is already one dollar more expensive per gallon than regular gasoline.

While diesel consumption is low among American travelers, the already-struggling supply chain will feel increasing pressure. Truckers, already concerned about the growing uncompensated costs that are likely to drive small owner-operators out of business, will have high fuel overhead to deal with them. The average retail price of diesel this month peaked at $ 5.50 / gallon – the highest on a 2005 record.

Prices are responding to record futures contracts and decades-low stocks, further pressuring consumers to cope with rising inflation. Russia’s aggression in Ukraine has tightened global fuel supplies and led to fierce international competition for diesel produced along the US Gulf Coast.

Analysts say export demand is expected to decline ahead of US demand, which means supply will be lower due to the crisis, but this will not match the relief at the pump.

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