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What's Up With Gasoline Prices

Changes in gasoline and diesel prices mirror changes in crude oil prices. Those changes are determined in the global crude oil market by the worldwide demand for and supply of crude oil. 

  • Per-barrel costs for crude oil – the No. 1 factor in the cost of producing gasoline and diesel – have risen due to a tighter global oil supply/demand balance and lower inventories compared to last year.
  • With a strong economy, U.S. petroleum demand has run at its highest levels since 2007 and was up by more than 750 thousand barrels per day in April, compared with one year ago.
  • As they do every year around Memorial Day, the start of the summer driving season, Americans are traveling more, which could raise demand further.
  • Although gasoline prices have increased recently, they’re still lower than where they were four years ago, largely because of increased domestic oil production.

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