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Gas prices at 7 year high

Gas prices are at a 7-year high.  The statewide average is about $2.92, and nationwide it’s $3.27.  Don Redman with AAA Mississippi told SuperTalk this morning he expects prices to stabilize, but doesn’t think we’ll see a significant drop.

“Usually in the fall and into the winter see see some of the best prices.  I don’t think that’s going to be the case this year.  I think we’re gonna stay pretty average where we are right now.  $2.90 to $2.95 and in some cases even three dollars a gallon.”

He explained that before Hurricane Ida in August, crude sold for about $60 a barrel.  That same barrel of crude is currently selling for $80.

“You had oil wells being capped in 2020 because no one was producing oil because there was no demand.  Now you come to 2021 and there’s this uptick in demand globally, and we just don’t have that product ready to ship out so we have been playing catch up.”

Ida also caused offshore drilling and refineries to go offline, and some have yet to reopen.  Last week OPEC and other oil-producing countries met and decided not to increase production.

 

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