Home Gas effect The legacy of Hurricane Ida: rising gas prices

The legacy of Hurricane Ida: rising gas prices

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After rising steadily for much of 2021, U.S. gas prices edged down in early September, as is typically the case in most years at the start of the fall season.

However, over the past week, gas prices have moved in the opposite direction, rising 1.3 cents per gallon to $ 3.18 per gallon, according to GasBuddy.

“Gas prices have kind of stuck in limbo and remain near 2021 highs long after Hurricane Ida has dissipated. The damage to oil production has been ignored and has so far prevented prices from resuming their seasonal decline ”, Patrick De Haan, head of oil analysis for GasBuddy, said in a blog post this week. However, demand fell for the fifth week in a row.

“Ida has caused the loss of more than 30 million barrels of oil production in the Gulf of Mexico, and with gasoline demand remaining relatively high for the season, oil stocks remain relatively tight, preventing any further development for the time being. An organized drop in gas prices. As a result, we may have to wait a few more weeks until the hurricane season slows down for oil inventories to start rising and gas prices to drop. “

The fall in oil prices has also had a significant effect.

Oil was trading lower as the Dow Jones set to lose nearly 600 points at the opening Monday as Asian stocks sold off on fears of an economic slowdown and an upcoming meeting of the Fed that could involve a policy change, the Fed potentially on the verge of slowing monetary stimulus as inflation rises, “GasBuddy said.” In addition, cases of Covid continue to increase as cooler weather returns and the possibility of a federal shutdown persists. ”

In a report Also released on Monday, the American Automobile Association (AAA) reported a slightly higher number, indicating that the average price had risen to $ 3.19 per gallon. The organization attributed the gain to a slowdown in refinery activity following recent hurricanes that hit the Gulf region and put nearly a quarter of production offline.

“Hurricane Nicholas complicated and slowed Ida’s recovery, but the seasonal drop in demand helped moderate price increases for the week,” AAA spokesperson Andrew Gross said in the statement. . “We’re not clear yet, however. We are only halfway through hurricane season, and it has been active so far, with 17 named storms already. Motorists can expect price fluctuations until October.

By AAA, prices increased eleven cents in Ohio, ten cents in Florida, seven cents in Illinois and Indiana, six cents in Delaware, and five cents in West Virginia and Washington, DC

Both reports noted that gasoline prices are almost $ 1 lower than they were a year ago when the pandemic caused gasoline demand to collapse and lower prices.

Stephen Silver, Technology Writer for The National Interest, is a journalist, essayist, and film critic who also contributes to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Revoir and splice today. Co-founder of the Philadelphia Film Critics Circle, Stephen lives in the suburbs of Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Image: Reuters