Don’t be surprised if it costs you more money to fill your gas tank on Thursday warns Michael Green, spokesperson at AAA.
“There is a good chance that many drivers will wake up to higher gas prices” following the big spike in oil this week, he said.
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Green notes “it’s not uncommon for retail prices in Ohio, Michigan and Indiana to jump 5 to 10 cents per gallon overnight.” For the rest of the nation it may take a week or two for prices to climb. That would bump up the national average to $2.49 from $2.39. California may be the exception. Prices, which are higher than the national average at $3.09 per gallon, may even decline in the region as Exxon Mobil’s (NYSE:XOM) refinery ramps up full production following an explosion in February.
Rising prices at the pump are directly correlated to the 5% jump in NYMEX crude Wednesday, which is flirting with $56 a barrel, a fresh high for 2015. The jump came Wednesday after the Energy Information Agency reported U.S. crude oil inventories rose by 1.3 million barrels, above the 4 million barrel estimate. Data from the American Petroleum Institute released Tuesday showed a similar trend. Phil Flynn, FOX Business Network contributor and senior market analyst at the PRICE Futures Group, says the data “could be a sign that the cutbacks in U.S. oil production along with better demand is getting the market back into some semblance of balance.”
Oil prices have declined more than 41% since April of 2014 putting more money in the pockets of consumers. President Obama highlighted the windfall during his State of the Union speech in January predicting “the typical family this year should save about $750 at the pump.”
That figure may be too optimistic if oil prices continue to rebound.
Check out how gas prices are looking across the U.S. here.