US Gasoline Analysis – March-12-2024

Gasoline prices are hovering around $2.6 per gallon, almost the highest they’ve been in five months. The main reason is that there’s not enough supply. The Organization of the Petroleum Exporting Countries (OPEC) and its friends decided to keep cutting down the amount of oil they produce until the end of June.

Saudi Arabia is cutting down heavily. They are producing 1 million barrels of oil every day. Russia, Iraq, and the United Arab Emirates (UAE) also produce less oil, which means there’s less gasoline available.

US Gasoline Analysis 4-Hour Chart

Middle East Tensions and US Supply Drops

The situation in the Middle East is making things uncertain. There are peace talks between Israel and Hamas, and attacks are happening in the Red Sea area. These issues can make it harder to get oil, which can push prices up. In the USA, the amount of petrol stored is getting lower quickly.

Last week, it dropped by 4.46 million barrels, the most significant drop in four months. This was a lot more than people thought. They were expecting it to fall by only 1.6 million barrels.

Market Reactions and Future Predictions

Because there’s less gasoline and problems in the Middle East, gasoline prices might stay high. If the countries keep producing less oil and the issues in the Middle East don’t get resolved, prices could even go higher.

Drivers need to know this because it could mean paying more at the pump. People are watching closely to see what happens next with oil production and geopolitical tensions.