US drivers spending more to fill up in wake of oil's rally

  • Drivers in the US are paying more to fill their tanks despite swelling gasoline supplies and the lowest seasonal demand for the fuel in decades.
Cars are parked in an auto dealer lot Wednesday, April 15, 2020, in unincorporated St. Louis County, Mo. U.S. retail sales recorded a record drop in March, with auto sales down 25.6%, as the coronavirus outbreak closed down thousands of stores and shoppers stayed home. (AP Photo/Jeff Roberson) (AP)
Cars are parked in an auto dealer lot Wednesday, April 15, 2020, in unincorporated St. Louis County, Mo. U.S. retail sales recorded a record drop in March, with auto sales down 25.6%, as the coronavirus outbreak closed down thousands of stores and shoppers stayed home. (AP Photo/Jeff Roberson)

US drivers are facing the highest pump prices in two months, a consequence of the costlier crude oil used to make the fuel.

Domestic retail gasoline averaged $2.19 a gallon on Wednesday, up about 5 cents so far this month, according to auto club AAA. Crude is the culprit. Benchmark crude futures in the US are the most expensive in months, following a rally fueled in part by optimism around the impending circulation of Covid-19 vaccines.

Also check these Vehicles

Find more Cars
Mahindra Global Pik Up (HT Auto photo)
UPCOMING
2498 cc Diesel Manual
₹ 25 Lakhs
View Details
Hyundai Creta (HT Auto photo)
1497 cc Multiple Both
₹ 11 - 20.15 Lakhs
Compare
View Offers
Mahindra Thar (HT Auto photo)
2184 cc Multiple Both
₹ 11.25 - 17.20 Lakhs
Compare
View Offers
Tata Punch (HT Auto photo)
1199.0 cc Petrol Both
₹ 6 - 10.10 Lakhs
Compare
View Offers
Tata Nexon (HT Auto photo)
1497 cc Multiple Both
₹ 8.10 - 15.50 Lakhs
Compare
View Offers
Maruti Suzuki Swift (HT Auto photo)
1197.0 cc Multiple Both
₹ 5.99 - 9.03 Lakhs
Compare
View Offers

And the price of oil may rise further, hurting US drivers. Banks, such as RBC, suggest a strengthening physical market and improving consumption in China, have also helped boost prices recently.

Also Read : Global oil demand is rebounding again after November trough

The crude needed to produce gasoline “is climbing due to the vaccination availability and promise that distribution is building toward being more widely available in 2021," said Jeanette Casselano, a spokeswoman for AAA.

Front-month West Texas Intermediate crude futures are up about $6 a barrel since mid-November. Gasoline futures are trading at the highest since August.

Drivers are paying more to fill their tanks despite swelling gasoline supplies and the lowest seasonal demand for the fuel in decades. This combination typically leads to lower pump prices.

First Published Date: 17 Dec 2020, 16:27 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.