When it comes to fuel prices, the new norm that we saw in 2020 has continued for most, if not all, of 2021. COVID-19 case counts continue to dictate where oil prices move, and while demand for oil and the price of oil have rebounded from the low points we saw last year.
“Oil production is lagging behind the recovery and demand and that may continue to be the case for the weeks and months ahead. And of course now, we’re in the midst of hurricane season,” according to Patrick DeHaan with Gas Buddy. He noted that typically OPEC dictates where oil prices go, but he says OPEC is now chasing the market.
“They don’t want prices to go up too much, but, of course, they are happy that prices have gone up compared to last year, but it is kind of a cat and mouse game where demand goes up and then OPEC reacts and raises production. But now, with COVID surging here in the past couple of weeks, the question I have is will OPEC adjust its oil production numbers downward in light of the increase globally we’re seeing because of the Delta variant?”
DeHaan added U.S. consumers have seen some of the highest gasoline and diesel prices in the past seven years.