Thanks Joe… Gas Prices Have Never Been This High This Time Of Year

Tyler Durden 2023.09.18 2 min read

Thanks Joe… Gas Prices Have Never Been This High This Time Of Year

Oil prices in the US jumped back above $90 a barrel for the first time since November 2022, sending worrying signals to The Fed and The White House.

The surge in WTI has dragged gasoline prices at the pump dramatically higher and worse still, given the lag in the supply chain, pump prices look set to go higher…

Source: Bloomberg

Despite the end of the peak summer driving season, gas prices, which were already a factor in pushing up inflation in August, will likely continue rising through next week because of the spike in oil prices.

In fact, prices at the pump are at a record high for this time of year, surpassing prior seasonal highs in 2022, 2012, and 2008…

Source: Bloomberg

According to AAA, at least a dozen states have gas prices averaging $4 a gallon or higher, including Colorado, North Dakota, and California.

President Biden acknowledged the spike in gas prices, in a press statement on Sept. 13.

“Overall inflation has also fallen substantially over the last year, but I know last month’s increase in gas prices put a strain on family budgets. That’s why I remain laser-focused on cutting energy costs, including by investing in clean energy to bolster our energy security,” said the president.

His administration’s green energy policies have not helped matters, with the White House terminating oil drilling contracts on Federal lands in Alaska.

Compounding higher gasoline prices is a simultaneous spike in diesel costs. Diesel prices often climb in the fall due to seasonal consumption from farmers, who use the fuel for harvesting, and as demand for heating climbs. But this year, the prices are still much higher than usual.