Posted at 4:50 p.m. on July 20, 2021
Gas prices up 11 cents but relief on the way
The Brillion News
MADISON – The average price for gasoline in Wisconsin is hovering around $3 a gallon, but there may be a slight relief coming.
The price of crude oil dropped four percent last week and on Monday morning it dropped an additional seven percent.
The price of US crude is now trading below $67 per barrel for the first time since early June.
“Crude oil prices have dropped this morning on concerns about the Delta variant and how that could slow economic recovery from the pandemic,” said Molly Hart of the American Automobile Association (AAA). “While this news may not mean significant relief at the pump, it could help prevent prices from going much higher.”
Gasoline prices in Wisconsin have increased a total of 92 cents this year. The main driver behind the jump at the pump has been the price of crude.
Domestic oil prices have increased as much as 57 percent since January, as global crude oil supplies struggled to keep up with rising demand.
A dynamic market
At the close of Friday’s trading, the WTI (West Texas Intermediate) price increased by 16 cents to settle at $71.81 per barrel.
WTI is a benchmark crude oil price. WTI is known as a “light sweet oil” because it contains around 0.34 percent sulfur, making it “sweet,” and has a low density, making it “light.”
WTI is considered a high-quality oil that is easily refined.
Although prices fluctuated because of a stronger dollar, crude prices declined on the week due to supply concerns and tension between Saudi Arabia and the United Arab Emirates that prevented OPEC and its allies from reaching a deal to increase crude production.
However, under the compromise, OPEC will increase daily crude production by 400,000 barrels in August.
The increase is expected to help lower crude prices, assuming it is not met with higher demand. Crude prices could even decline this week in anticipation of the production increase.
~ Ed Byrne/BN from data from AAA