Gas and oil prices are on the rise as warm weather brings more demand
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Gas prices are up eight cents since last month. (iStock)
With warmer weather on the horizon, gas prices have started their usual trend upward. Prices rose to $3.15 last week, AAA reported.
This week’s prices were eight cents higher than this time last month, but 29 cents lower than last year.
“It feels like being in a car with a cold battery, cranking away yet slow to turn over,” AAA spokesperson Andrew Gross said. “But gas prices will likely start increasing around Valentine’s Day.”
Higher prices are largely due to an increase in demand as spring inches closer. Gas demand increased from 8.14 to 8.81 million barrels per day, data from the Energy Information Administration (EIA) showed.
A lower oil supply is also contributing to the slow rise in price, according to AAA. Oil prices are also up from last week at $73.86 per barrel, the EIA reported.
You may not be able to control gas prices, but you can control other car-related expenses. Lowering your auto insurance premiums can help you save each month. Car insurance rates vary based on numerous factors, including your credit, driving habits and the insurance company. Use a tool like Credible to shop around and lower your car insurance premium today.
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Some states saw larger gas price changes than others
Gas prices fluctuated across the country, with certain states seeing larger price hikes than others. Here are the states that saw the largest change in gas prices last week:
- Missouri (+22 cents)
- Wisconsin (+16 cents)
- Kentucky (+15 cents)
- Utah (+13 cents)
- Illinois (+10 cents)
- Florida (−10 cents)
- New Mexico (−7 cents)
- Ohio (+6 cents)
- Michigan (+5 cents)
- Arizona (+5 cents)
The most affordable markets for gas include:
- Oklahoma ($2.67)
- Wyoming ($2.69)
- Colorado ($2.72)
- Kansas ($2.74)
- Mississippi ($2.75)
- Arkansas ($2.75)
- Missouri ($2.79)
- South Dakota ($2.81)
- Texas ($2.82)
- North Dakota ($2.82)
Comparing multiple insurance quotes can potentially save you hundreds of dollars per year. Visit Credible now to compare quotes free of charge from multiple providers at once.
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Spring likely brings higher gas prices
Most years, gas prices go up as soon as spring hits. More drivers are on the road and traveling in warmer seasons, so demand rises. Since oil companies rush to keep up with this demand, the cost of gas tends to rise when demand rises.
Over the last 14 years, gas prices have gone up, with the average rise in price hovering around 10 cents per gallon.
“I expect any modest and temporary drops in prices will be replaced by pricier gasoline as we get closer to the start of spring,” said Patrick De Haan, GasBuddy head of petroleum analysis.
To save money this spring, compare auto insurance quotes today and see if you qualify for a lower rate. Credible’s car insurance marketplace simplifies this shopping process, allowing you to compare multiple rates all in one place.
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Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
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