Energy News Today

Petroleum prices head higher as inventories tighten further

Petroleum prices edged higher this week.

Crude oil peaked mid-week closing at $83.87 per barrel on the New York Mercantile Exchange on Wednesday but dropped back $2 to $81 during trading on Thursday.

Gasoline prices followed the rally of crude oil increasing $0.072 per gallon over last week, according to AAA. The average price in the U.S. was $3.369 on Wednesday.

California has the most expensive gasoline averaging $4.531. 

Texas has the cheapest at $3.018. All regions of Texas witnessed increases in gasoline prices this week. North Texas prices averaged $2.998 up $0.083, West Central averaged $3.070 up $0.081, and East Texas averaged $3.058 up $0.085, according to AAA.

Diesel prices across the nation averaged $3.579 and $3.262 in Texas.

The rise in crude oil, gasoline and diesel prices can be attributed to increased demand and decline of oil inventories. 

The Energy Information Administration reported this week that oil inventories declined 400,000 barrels to 426.5 million barrels, which is a decline of 61.6 million barrels from a year ago and a decrease of 123.5 million barrels since last June.

EIA also reported decreases in refined-product inventories with distillate and gasoline demand rising despite higher consumer prices. Gasoline inventories fell 5.37 million barrels to the lowest since November 2019 and demand is at its highest since 2007 for this time of year.

Read More: Petroleum prices head higher as inventories tighten further

2021-10-23 17:04:25

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