The prospect of summer drivers piling up on American roads will produce strong gains in the price of gasoline, a sign of economic recovery and a benefit for the pandemic-ravaged energy industry.
Raised by the recovery in oil and growing consumer demand, gasoline prices at pumps in the U.S. reached an average of $ 2.88 a gallon over the past week, according to the AAA. This is an increase of 30% over this time last year, when the pandemic blockades clashed with fuel use.
Rising prices are a gift for early-season fuel manufacturing, including Valero Energy Corp and Phillips 66, after a year of bruising, which helps make the energy industry share the best performance. this year in the S&P 500. the gap between future gasoline and crude, recently reached its highest level in three years, with more than $ 24 a barrel.
Some analysts see new gains ahead. Prices tend to rise closer to summer, when millions of Americans drive to vacation spots and oil refineries mix more expensive fuel that doesn’t evaporate from the heat.
Expanding gas prices are coupled with a recent rise in other commodities such as copper, as well as improved data on jobs and spending, as signs that the economy is gaining momentum. At the same time, high fuel prices are biting some consumers and businesses, while raising concerns about rising inflation.