Gas prices are climbing higher in the U.S., leaving some customers wondering why they are paying more at the pump.
One of the biggest factors affecting gas prices is the heat wave that has been hitting the U.S. these last few weeks. With these extreme increases in temperatures, some oil refineries have had to pause production.
Patrick De Haan, head of petroleum analysis for GasBuddy, said the following about oil refineries halting production to CBS News:
“Some of their sensitive equipment has been stripped offline. We’ve seen brief power outages that, unlike your home when your router can just reset and five minutes later, you’re back online — refineries are a little bit more delicate when it comes to getting this equipment back online.”
A pause in production means there’s less oil to go around, and that also affects the price of goods connected to it. This helps explain why gas prices are creeping higher lately and why more increases could be on the way.
Will Gas Prices Go Back Down?
That’s a tricky question to answer. It’s possible that customers will see the price of gas retreat again when cooler months come. That means prices could start to lower when September gets here.
However, there’s another factor that could keep gas prices inflated. We’re getting ready to head into hurricane season, and damage done by these natural disasters could cause the price of gas to remain high.
Investors seeking out even more of the most recent stock market news on Thursday will want to keep reading!
We’ve got all of the latest stock market news that traders need to know about on Thursday! A few examples include why shares of AMC Entertainment (NYSE:AMC) stock, MaxLinear (NASDAQ:MXL) stock, and Silicon Motion Technology (NASDAQ:SIMO) stock are in the news today. You can catch up on all of this news by checking out the links below!
More Thursday Stock Market News
- AMC Stock: Adam Aron Asks for APE Court Decision in Early August
- MXL Stock Alert: Why Is MaxLinear Down 23% Today?
- SIMO Stock Alert: MaxLinear Terminates Silicon Motion Acquisition
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
