Aug. 4 (UPI) -- U.S. retail gasoline prices Friday were nearly 30 cents higher than this time last month, though AAA said the rate of increase is slowing and relief may be on the horizon.
AAA on Friday put the national average retail price at $3.83 per gallon, about 30 cents higher than month-ago levels and 10 cents per gallon higher than last week. California this week passed the $5 mark and Washington state is close behind. At the low end, drivers in Mississippi are paying $3.33 per gallon, after prices dipped below $3 last month.
Prices are on the rise in response to parallel trends in commodities. The price of oil accounts for the bulk of what consumers see at the pump and the price for Brent, the global benchmark for the price of oil, is on a six-week winning streak.
Trading around $85 per barrel, the price is some $10 higher than month-ago levels.
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Andrew Gross, a spokesperson for AAA, added that recent heat in the U.S. South likely crimped refinery activity, contributing to the recent spike in retail gasoline prices. A cooling trend is emerging, however, and refineries are returning to normal.
"Coupled with tepid demand and declining oil prices, this may help take the steam out of the tight supply price jolts we've seen lately," he said.
That is, however, unless a more recent move higher in crude oil that followed Saudi Arabia's decision to keep a lid on production through September holds. Brent rallied 2.3% on Thursday's production announcement but was only up by around 0.3% as of 10:30 a.m. EDT on Friday.
A new federal estimate for retail-level gasoline prices is due next week. A July estimate put the annual average this year at $3.40 per gallon. Drivers paid $4.14 per gallon on average nationally at this time last year.
