Oil prices could rally this week, pushing gasoline prices higher
Published 6:12 am Monday, June 5, 2023
While the national average drifted lower last week as oil prices cooled off, the drop may be temporary.
OPEC+ agreed Sunday to additional production cuts, while Saudi Arabia is going above and beyond and cutting July production. As a result, oil prices are likely to see upward pressure as global supplies, which have remained tight, promise to become even tighter as a result, according to Patrick De Haan, head of petroleum analysis at GasBuddy.
“Last time OPEC+ agreed to cut production, it led to a temporarily rally in the price of oil, but as global oil demand hasn’t been as strong as expected, the cut failed to hold oil prices up,” De Haan said. “OPEC+ and Saudi Arabia are likely hoping that the rise in oil prices will stick longer this time, as the Saudi economy relies on oil prices north of $81 per barrel. It’s likely that as a result of the production cut, oil prices could rally this week, pushing gasoline prices higher as early as mid-week.”
How long any rise in gas prices lasts is up in the air, “but I do not yet believe motorists need to be worried. Any rise in average prices should be fairly small, and we’re still extremely unlikely to make a run at record prices anytime soon,” De Haan said.
Average gasoline prices in Texas have fallen 5.3 cents per gallon in the last week, averaging $3.04/g today, according to GasBuddy’s survey of 13,114 stations in Texas.
Prices in Texas are 0.4 cents per gallon higher than a month ago and stand 151.6 cents per gallon lower than a year ago.
The national average price of diesel has fallen 3.4 cents in the last week and stands at $3.88 per gallon.
According to GasBuddy price reports, the cheapest station in Texas was priced at $2.64/g Sunday while the most expensive was $4.17/g, a difference of $1.53/g.
The national average price of gasoline has fallen 3.9 cents per gallon in the last week, averaging $3.51/g today.
The national average is down 1.7 cents per gallon from a month ago and stands 134.5 cents per gallon lower than a year ago, according to GasBuddy data compiled from more than 11 million weekly price reports covering over 150,000 gas stations across the country.
Neighboring areas and their current gas prices:
• Midland Odessa – $2.98/g, down 4.4 cents per gallon from last week’s $3.03/g.
• San Antonio – $2.97/g, down 11.7 cents per gallon from last week’s $3.09/g.
• Austin – $3.03/g, down 10.0 cents per gallon from last week’s $3.13/g.
Historical gasoline prices in Texas and the national average going back ten years:
June 5, 2022: $4.56/g (U.S. Average: $4.85/g)
June 5, 2021: $2.72/g (U.S. Average: $3.05/g)
June 5, 2020: $1.68/g (U.S. Average: $2.01/g)
June 5, 2019: $2.45/g (U.S. Average: $2.78/g)
June 5, 2018: $2.74/g (U.S. Average: $2.94/g)
June 5, 2017: $2.18/g (U.S. Average: $2.37/g)
June 5, 2016: $2.14/g (U.S. Average: $2.36/g)
June 5, 2015: $2.55/g (U.S. Average: $2.76/g)
June 5, 2014: $3.45/g (U.S. Average: $3.66/g)
June 5, 2013: $3.37/g (U.S. Average: $3.62/g)