Prices of gasoline reach to highest peak
As per the new reports, the United States gasoline prices capture a 9-month peak because drivers drew to the roads on holiday travel. Whereas the crude oil prices remained increasing and refiners drop fuel production because of weaker margins. Based on the data published by the American Automobile Association, the gasoline prices recorded top figure of around $2.25 this week which is the highest amount since March when coronavirus was announced as a worldwide pandemic.
Supplies declined to the lowest level in a month at nearly 236.6 million barrels. The rush traffic during the holiday season in the United States led to larger cases of COVID-19 pandemic, along with a congestion index releasing the largest month-wise gain since July. Reportedly, stay at home orders to halt the spread of coronavirus have considered on fuel demand whole year, decreasing gasoline prices and demand as well as other motor fuels.
Refiners are moving at average utilization rate that are less than 80 percent in 2020, represented by the Energy Information Administration. Leading oil refiners such as Exxon Mobil and Royal Dutch Shell are cutting output on low profits. Contributing to the gain in the retail prices, oil has rose to around ten-month highs due to vaccination distributions expand.
The increment in prices is associated to holiday travel but especially to maintenance of refinery as well as the increment in crude oil prices in December this year. The fuel price gain may not durable into the new year as weak demand in the Q1. New refinery drops clashed with holiday season travel, which increased demand of gasoline to nearly 8.1 million bpd in the week to 25th of December, data showcased by the Energy Information Administration on Wednesday, from the amount of 7.6 million barrels per day at the beginning on the December month.