As of February 6th, the average regular gasoline price at the pump in the US is $3.470/gallon. The highest price is in Hawaii at $4.907/gallon and the lowest is in Texas at $3.086/gallon*. Prices change daily.
Prices at the pump were three cents lower than the week before; however, 18 cents more than a month ago and 4 cents more than a year ago. OPEC+, a 23-nation group led by Saudi Arabia and Russia, has decided to maintain their current production levels and not make any cuts which will make prices at the pump more stable. Although companies are laying off, many are hiring, adding over a half million new jobs in January. Unemployment is at a 54-year low, 3.4%. This may cause prices to go up as demand may increase.
The price of gasoline at the pump is 60% correlated to the price of crude oil. So, if the price of oil goes up, the gasoline price at the pump will also. There is a direct correlation between the movement of the oil price and the gasoline price. Demand has risen, but the total supply growth is helping limit price increases. However, Goldman Sachs believes the oil price will be above $100 a barrel this year. Russian sanctions and a lack of production spending resulting in a shortage is seen as a cause for the price increase. Also on Saturday, February 4th the Saudi Energy Minister Prince Abdulaziz bin Salman said: “All these sanctions, embargos, will be intertwined into one thing and one thing only: there will be shortages of all kinds of energy supplies at a time they are needed most. That’s what I’m worried about.”
In recent times the US reached energy independence; however, in order to maintain it we need to increase access to natural gas and oil on federal lands. Government restrictions on oil and gas exploration and production should be lifted. This will give us more supply and create good paying oilfield jobs.
Most oil and gas opportunities will come from developing countries where natural gas demand will remain high as folks want pipelines to deliver natural gas to their homes, so they don’t have to use wood for cooking and heating.
The climate agenda is not the only priority. There are other priorities such as economic growth which will provide better health and reduce poverty in these developing countries.
*gasprices.aaa.com/state-gas-price-averages