Gasoline prices are expected to rise this summer as demand continues to outpace supply, according to a recent report.
World Oil reported that the gasoline industry was expecting tight supplies in the summer months as the stock market indicates, “futures contracts for gasoline are showing that traders expect the summer to be weak in supply and strong in demand.”
America typically restores gasoline supplies during the winter months due to less demand with the excess gas utilized when the weather gets colder, according to World Oil.
The publication stated that supplies are way below normal this year and production challenges at oil refineries could possibly hinder the usual annual build-up. Europe, one of America's biggest external gasoline suppliers, also is experiencing a tight supply.
According to World Oil, demand for gasoline is above typical usage and the forecast paints a bleak picture for President Joe Biden’s desire to lower gas prices.
“This year, inventories are starting off well below the seasonal norm, and there are signs that work on oil refineries could slow the buildup of stockpiles,” World Oil reported. “ExxonMobil Corp.’s Baytown oil refinery, the fourth largest in the U.S., has suffered a fire and this spring’s refinery maintenance season is set to be heavy.”