Market Close: May 12 Mixed, Diesel DN 3.5 cents, Gas UP 10.6 Cents
May 12th, 2022 by loren
The national average crossed above $4 per gallon in March on the heels of Russia’s invasion of Ukraine, and it’s remained above that mark since. California has the highest state average at $5.853. In 10 counties across the state, average prices are now above $6.
Retail diesel prices also hit another record Thursday. The national average for a gallon is now $5.557, which is up 53 cents in the last month. Part of the surge in prices is due to refiners — which turn crude oil into the products such as gasoline that are used daily — already running near full capacity.
Refining capacity is lower than pre-pandemic, while demand for petroleum products has rebounded as economies around the world resume operations. Lost products from Russia has further exacerbated an already tight market.
“All of our refinery margin indicators were in double-digit territory in April for the first time, regardless of region and complexity,” the International Energy Agency said Thursday. “The current almost universal product shortage, low inventories and refinery capacity bottlenecks have led to inelastic short-term supply, pushing cracks for almost all products to extraordinarily high levels.”
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