Gas prices increase, but relief expected soon
The state average price for gasoline in Wisconsin is hovering at $3 a gallon, but there may be a slight relief. The price of crude dropped 4% last week and Monday morning it went down an additional 7 percent. The price of US crude is now trading below $67 per barrel for the first time since early June.
“Crude oil prices have dropped this morning on concerns about the Delta variant and how that could slow economic recovery from the pandemic,” said Molly Hart spokesperson for AAA - The Auto Club Group. “While this news may not mean significant relief at the pump, it could help prevent prices from going much higher.”
Gasoline prices in Wisconsin have increased a total of 92 cents this year. The main driver behind the jump at the pump has been the price of crude. Domestic oil prices have increased as much as 57% since January, as global crude oil supplies struggled to keep up with rising demand.
Oil market dynamics
At the close of Friday’s formal trading session, WTI increased by 16 cents to settle at $71.81. Although prices fluctuated at the end of the day because of a stronger dollar, crude prices declined on the week due to supply concerns and tension between Saudi Arabia and the United Arab Emirates that prevented OPEC and its allies from reaching a deal to increase crude production. However, under the compromise, which media reports confirmed over the weekend, OPEC will increase daily crude production by 400,000 barrels in August. The increase is expected to help lower crude prices, assuming it is not met with higher demand. Crude prices could decline this week in anticipation of the production increase.