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US Gasoline Prices Set to Jump: Reuters Analysts

OIL PRODUCTS

US gasoline pump prices are likely to see a sharp upswing in the coming weeks as major refinery outages have cut supplies, according to Reuters.

  • The national average for gasoline has risen 9% since the start of the year to $3.40/gal. This is the highest since early November, according to AAA.
  • US gasoline stocks fell by 5.7m bbl in the week to March 8, according to EIA data. Stocks are now 2% below the five-year average.
  • "There is every reason to believe gasoline prices will screech even higher going forward," said Tom Kloza, head of energy analysis at OPIS.
  • US refinery utilisation rates have been below 87% for eight consecutive weeks, the longest stretch since 2021.
  • Around 1.2m b/d of the 18m b/d of US capacity is currently offline this week.

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