PROVIDENCE — A surge in demand, higher oil costs and concerns regarding the impact of Hurricane Beryl on refinery operations in southern Texas are driving up gas prices across the nation.
Texas is the top crude oil and gas processing state in the country, accounting for one-third of the nation’s total refining capacity. As a result, production disruptions at any of the state’s 32 petroleum refineries can impact pump prices nationwide.
According to an article from Reuters, some crude oil export facilities, refineries and offshore platforms in the area activated emergency plans and reduced or shut down production. Over the weekend, several key ports in the state closed in preparation for the storm, which made landfall along the Texas coast early Monday morning.
“Demand increasing and supply decreasing is a recipe for higher pump prices,” said Jillian Young, director of public relations for AAA Northeast. “Add to the mix not just the current impact of Hurricane Beryl, but concerns about increased activity across the entire hurricane season, and it’s certainly not unusual to see an upward trend.”
Beyond hurricane threats, oil and gas markets continue moving higher as Americans take to the roads for the summer driving season. Gasoline demand reached 9.4 million barrels a day for the week ending June 28, the most recent demand figures available from the Energy Information Administration. As demand reached the highest level so far this year, inventories of gasoline fell by 2.2 million barrels.
The average gas price in Rhode Island is up four cents over last week, averaging $3.47 per gallon. Today’s price is two cents higher than a month ago and four cents lower than on the same day last year.
Rhode Island’s average gas price is three cents lower than the national average of $3.50 per gallon. Today’s national average price is five cents higher than a month ago and three cents lower than on the same day last year.