CNN

You’ll pay 14% more for gas this summer, forecast says

Apr 10, 2018, 11:21 PM | Updated: Jun 7, 2022, 4:00 pm
Prices at the pump are likely to be 14% higher than last summer — an average of $2.74 per gallon,...
Prices at the pump are likely to be 14% higher than last summer — an average of $2.74 per gallon, the US government estimated on Tuesday.

(CNN Money) — Summer driving will be more expensive this year. Thanks, OPEC.

Prices at the pump are likely to be 14% higher than last summer — an average of $2.74 per gallon, the US government estimated on Tuesday.

The price of oil has climbed because of efforts by OPEC and Russia. Brent crude, the global benchmark, surged 3.5% on Tuesday to $71.04 a barrel, the highest since late 2014. That’s already above the EIA forecast of $63 for this summer, suggesting gas prices could go even higher. Brent crude averaged just $51 last summer.

Summer driving season, which the EIA considers April through September, is historically when demand peaks for gasoline as Americans go on vacation. The EIA expects highway travel to increase 1.3% over last summer.

Although gas is well below the $4 a gallon prices of 2008, it has risen because of the recovery in the oil markets. The average gallon of gasoline fetched $2.66 on Tuesday, according to AAA. That’s up from $2.39 last year, just as summer driving season was beginning.

Of course, those are just national averages. West Coast states are grappling with more pain at the pump.

Drivers in California, Oregon, Nevada, Washington State, Hawaii and Alaska already pay more than $3 per gallon, according to AAA. California’s average gas price has jumped to $3.52, compared with $2.99 a year ago.

Related: Saudi Arabia’s oil shipments to America have plunged

After crashing to just $26 a barrel in early 2016, crude oil has more than doubled in price. Supply in the United States is very strong. Production of crude recently hit record high because of the shale oil boom.

But foreign oil supply is down, largely because of OPEC’s efforts to boost prices by curbing production. Saudi Arabia-led OPEC and Russia reached an agreement in late 2016 to pump less oil. OPEC and its allies agreed last November to extend the cuts through the end of 2018.

The production cuts are designed to reduce the global oil glut — and they appear to be working, judging by the recovery in prices and decline in stockpiles.

Saudi Arabia decided last year to slash shipments of oil to the United States, the market watched most closely by oil traders. American imports of Saudi crude declined 14% last year to the lowest since 1988, according to the EIA.

At the same time, the United States is shipping record amounts of oil overseas since Congress lifted a ban on most exports in 2015. US oil exports have nearly quadrupled since then.

The-CNN-Wire
™ & © 2018 Cable News Network, Inc., a Time Warner Company. All rights reserved.

KSL 5 TV Live

Top Stories

CNN

Cameron Diaz is making a new movie with Jamie Foxx. (Weiss Eubanks/NBCUniversal/Getty Images via CN...
Leah Asmelash, CNN

Cameron Diaz is coming out of retirement, thanks to Jamie Foxx

After an eight-year hiatus, Cameron Diaz is making movies again.
1 day ago
Members of the National Transportation Safety Board arrive to investigate Monday's Amtrak Derailmen...
Rebekah Riess and Christina Maxouris, CNN

Missouri authorities identify 4 people killed in Amtrak derailment

Missouri authorities on Wednesday identified the four people who were killed when an Amtrak train crashed into a dump truck at a crossing near the town of Mendon earlier this week.
1 day ago
This court-sketch made on Monday shows defendant Salah Abdeslam (right) standing next to the 13 oth...
Xiaofei Xu, CNN and Reuters

Paris attacker Salah Abdeslam sentenced to life in prison without parole

Salah Abdeslam, who is believed to be only surviving member of the group that carried out a series of deadly gun-and-bomb attacks across Paris in November 2015, was found guilty on Wednesday and handed France's harshest sentence — life without the possibility of parole.
1 day ago
For the first time ever, economy class passengers are going to have the option of stretching out fo...
Karla Cripps, CNN

Airline reveals ‘Skynest’ bunk beds for economy class passengers

For the first time ever, economy class passengers are going to have the option of stretching out for some sleep on actual beds during their flights.
1 day ago
The University of Arizona is waiving tuition and fees for undergraduate students enrolled in one of...
Harmeet Kaur, CNN

University of Arizona will waive college tuition for Native students in the state

The University of Arizona announced this week that it will soon waive tuition and fees for undergraduate students enrolled in one of the state's 22 federally recognized tribes.
1 day ago
Taco Bell is testing a new menu item with a beloved snack food. The fast-food chain hopes the "Big ...
Jordan Valinsky, CNN Business

Taco Bell’s newest food uses an oversized Cheez-It

Taco Bell is testing a new menu item with a beloved snack food. The fast-food chain hopes the creation can replicate the success of its Doritos shells.
1 day ago

Sponsored Articles

hand holding 3d rendering mobile connect with security camera for security solutions...
Les Olson

Wondering what security solutions are right for you? Find out more about how to protect your surroundings

Physical security helps everyone. Keep your employees, clients, and customers safe with security solutions that protect your workplace.
Many rattan pendant lights, hay hang from the ceiling.Traditional and simple lighting....
Lighting Design

The Best Ways to Style Rattan Pendant Lighting in Your Home

Rattan pendant lights create a rustic and breezy feel, and are an easy way to incorporate this hot trend into your home decor.
Earth day 2022...
1-800-GOT-JUNK?

How Are You Celebrating Earth Day 2022? | 4 Simple Ways to Celebrate Earth Day and Protect the Environment

Earth Day is a great time to reflect on how we can be more environmentally conscious. Here are some tips for celebrating Earth Day.
Get Money Online...

More Ways to Get Money Online Right Now in Your Spare Time

Here are 4 easy ways that you can get more money online if you have some free time and want to make a little extra on the side.
Lighting trends 2022...

Lighting Trends 2022 | 5 Beautiful Home Lighting Trends You Can Expect to See this Year and Beyond

This is where you can see the latest lighting trends for 2022 straight from the Lightovation Show at the Dallas World Trade Center.
What Can't You Throw Away in the Trash...

What Can’t You Throw Away in the Trash? | 5 Things You Shouldn’t Throw in to Your Trash Can

What can't you throw away in the trash? Believe it or not, there are actually many items that shouldn't be thrown straight into the trash.
You’ll pay 14% more for gas this summer, forecast says