Gas prices in the United States have reached their highest levels in over ten years this week, according to the American Automobile Association (AAA). The average price for a gallon of regular gasoline was recorded at $3.811 on Tuesday, the highest post-Labor Day price since 2012. Despite this increase, it is still significantly lower than the all-time high of $5.016 per gallon seen in June of last year. The surge in gas prices can be attributed to a combination of factors, including a rally in global crude prices, a decline in domestic refining, and supply cuts from Russia and Saudi Arabia.
Both Russia and Saudi Arabia have recently agreed to extend their voluntary production cuts, which amount to 1.3 million barrels of oil per day, until the end of the year. This decision comes after the Energy Department reported that U.S. crude production reached its highest levels since the pandemic this summer, with output in June reaching 12.844 million barrels per day. The increase in U.S. crude production may have prompted Russia and Saudi Arabia to reduce their output in order to keep global prices elevated. Despite the rise in gas prices, experts suggest that prices could ease in the coming weeks due to minimal disruptions from Hurricane Idalia and the switch to cheaper winter gas mixes.
Keywords: gas prices, United States, American Automobile Association, average price, gallon, regular gasoline, post-Labor Day, global crude prices, domestic refining, supply cuts, Russia, Saudi Arabia, production cuts, U.S. crude production, global prices, experts, Hurricane Idalia, winter gas mixes.
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