Record gas prices in Arizona could start falling soon, oil analyst says
Mar 31, 2022, 7:25 AM
(Curtis Compton/Atlanta Journal-Constitution via AP)
PHOENIX – Arizonans could start paying less at the pumps in a matter of weeks, an oil-industry analyst said, after a long stretch of record prices.
California refinery issues have started to improve and the domino effect could drop prices in the Grand Canyon State between 35 to 75 cents a gallon, Patrick DeHaan with Gas Buddy told KTAR News 92.3 FM on Wednesday.
“Southern California gas prices have been dropping. That could help alleviate pressure not only in California but also in areas of Arizona and Las Vegas as well,” he said.
Arizona drivers are paying an average of about $4.67 a gallon, the seventh-highest in the country, DeHaan said, but added a reversal in oil prices or more refinery issues in California could put the relief on hold.
The Phoenix average is $4.73 per gallon.
Russia’s invasion of Ukraine has contributed to the surge in costs, but prices were rising long before then.
Crude prices plummeted in early 2020 as economies around the world shut down because of COVID-19. The price of futures even turned negative, meaning some sellers were paying buyers to take oil.
Prices rebounded, however, as demand recovered faster than producers pulled oil out of the ground and inventories dried up.
Then, the price increase accelerated after war began.
The Associated Press contributed to this report.
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