Gas prices likely to increase temporarily

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GasBuddy is warning motorists of an impending noticeable increase in gasoline prices as oil markets surged Thursday on the largest decline in oil inventories ever reported by the Energy Information Administration (EIA).

Thursday’s report from the EIA showed a decline in crude oil inventories of 14.5 million barrels (609 million gallons), along with a 4.2-million-barrel decline in gasoline inventories, causing oil prices to almost immediately jump $2 per barrel. The decline in inventories was likely fueled by delayed offloading of imported oil from crude carriers as a result of Hurricane Hermine.

While the drop in oil inventories is likely to reverse as oil shipments are offloaded again, there is still likely to be an increase in gasoline prices coming due to Thursday’s reaction in oil markets.

Gasoline prices are likeliest to rise in the Great Lakes region, an area that typically sees among the quickest reaction to drastic changes in the price of petroleum. Gas prices may rise 10-35 cents per gallon as soon as tomorrow morning throughout Michigan, Indiana, Ohio, Kentucky, Missouri, and portions of Wisconsin and Illinois.

The uptick in gas prices will likely be temporary until oil inventory numbers reflect the flow of oil resuming, which will eventually bring falling gas prices back. GasBuddy is still expecting plenty of sub-$2 per gallon gasoline this autumn and winter.