RI Gas Prices Surge From $2.86 to $3.56 in a Month, Warnings About Supply and Price

RI Gas Prices Surge From $2.86 to $3.56 in a Month, Warnings About Supply and Price

Rhode Island gas prices have rocketed upwards during the two-plus weeks since the United States and Israel attacked Iran.

And oil executives are warning that supply and price issues are only beginning.

According to new data from AAA Northeast, prices in Rhode Island are rocketing upward. Just one month ago, the average price was $2.86 per gallon, and it now averages $3.56 per gallon.

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The price of a barrel of Brent crude settled at $103 when markets closed on Friday, with domestically-produced West Texas Intermediate (WTI) ending the day at $98 — the highest closing price for both benchmarks since July 2022, according to AAA.

“As shipments of oil and gas cargoes through the critical Strait of Hormuz remain stalled, markets are increasingly focused on the potential for supply shortages around the world. Measures announced last week by the U.S. and other Western countries to address short-term supply woes failed to ease those fears in markets. On Wednesday, the International Energy Agency (IEA) authorized the release of 400 million barrels of crude from strategic reserves, and on Thursday, the U.S. lifted sanctions on about 20 million barrels of seaborne Russian crude. Oil and refined product prices climbed in response as markets viewed those measures as signs of a longer, extended conflict,” says AAA.

 

 

AAA adds, “Domestically, refinery activity increased last week as seasonal maintenance wraps up ahead of the summer driving season. According to the Energy Information Administration (EIA), U.S. refiners operated at 90.8% of capacity, up from 89.2% the prior week, and produced 9.62 million barrels a day of gasoline, up 500,000 barrels a day from the prior week. Gasoline demand, meanwhile, also rose to a solid 9.2 million barrels a day, an increase of a sizable 949,000 barrels a day, or 11% week over week. That’s the highest demand reading since mid-June and a likely sign of fuel retailers stocking up to get ahead of sharp price increases caused by the war with Iran.”

The Wall Street Journal reports Monday “that American oil executives delivered a bleak message to Trump officials in recent days: The energy crisis the Iran war has unleashed is likely to get worse.

In a series of White House meetings on Wednesday and recent conversations with Energy Secretary Chris Wright and Interior Secretary Doug Burgum, the CEOs of Exxon Mobil, Chevron, and ConocoPhillips

 warned that the disruption to energy flows out of the vital Strait of Hormuz waterway would continue to create volatility in global energy markets, according to people familiar with the matter.

In response to questions from the officials, Exxon CEO Darren Woods said that oil prices could rise past current elevated levels if speculators unexpectedly bid up prices and that markets could see a supply crunch of refined products. Chevron CEO Mike Wirth and ConocoPhillips CEO Ryan Lance also conveyed their concerns about the scale of the disruption, these people said.”