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The recent increase in gasoline prices was the largest one-day increase in the past 12 months.

Gas prices have spiked after remaining stable for months.

Regular petrol increased in price by 4 cents on Tuesday, bringing the national average to $3.64.

According to an analysis of AAA statistics, that is the highest daily increase since June 7, 2022. Gas prices have dropped significantly since last summer’s record high of almost $5 per gallon.

After a prolonged period of low pricing, “suddenly things have popped up,” noted Andy Lipow, head of Lipow Oil Associates.

Gas prices have dropped to near record lows from the previous year as recently as July 4th.

The unexpected increase in gas costs is the result of a surge in commodities as a whole, which has driven oil prices to three-month highs. As a result of Russian aggression against Ukraine’s port infrastructure, the price of wheat and grain has risen.

Intricate timing is required.

Hopes have been boosted that the United States will be able to avoid a recession as a result of inflation slowing down, in part due to falling gas costs. Speculators are banking on the Federal Reserve winning the war on inflation shortly. In addition, consumer sentiment has been on the rise, reaching a two-year high in July.

Those encouraging trends could be derailed by a resurgence in the prices of food and fuel.

Certainly, a year ago gas was 72 cents cheaper per gallon than it is now. And the national average is still much below the all-time high of $5.02 per gallon set in June of last year.

However, the price of gas has gone up by 8 cents in the last week.

Lipow stated that both OPEC and Russia’s output cuts and the high heat were to blame.

According to Lipow, OPEC, led by Saudi Arabia, and Russia have pledged to reduce production by around 5 million barrels per day from now until July.

The effects of the production cuts made by OPEC and its allies, known as OPEC+, are beginning to be seen in the market.

On Monday, the price of a barrel of oil in the United States reached $78.74, an increase of 2.2% from Friday’s close. Oil prices rose 17% in a matter of six weeks.

The production of gasoline, diesel, and jet fuel has been considerably limited due to the extreme heat that has hit the United States, Europe, and abroad.

Some refineries may not be able to work at full capacity to take advantage of rising profit margins.

Refineries, like people, do not enjoy temperatures with a heat index of 115, as Lipow put it.

As a result of the region’s extreme heat, countries like Saudi Arabia and others are burning oil to fuel their electrical networks.

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