New York
CNN
—
Pump prices are creeping towards $4 a gallon nationally.
The national average for regular gasoline hit $3.85 a gallon on Monday, according to AAA. That’s the highest level since October 19 and comes just weeks ahead of Labor Day weekend when millions of Americans will hit the roads.
The summer spike in gas prices has eased, with the cost to drivers moving just gradually higher more recently. The national average is up by two cents over the past week.
Still, gas prices have climbed by 28 cents over the past month and 32 cents since the Fourth of July as a result of higher oil prices caused by Russia and Saudi Arabia cutting supply and extreme heat sidelining some US refineries.
When the summer unofficially started Memorial Day weekend, drivers were enjoying big savings on gas from the year before. Those year-over-year savings have nearly vanished, with the national average down just 11 cents from this point last summer.
According to AAA, there are now 11 states averaging $4 or higher, including Arizona, Illinois and Utah. Colorado and Michigan aren’t far away.
OPEC leader Saudi Arabia earlier this month extended its oil production cut at least until September. An official source from the Saudi Ministry of Energy told state-run news agency SPA On August 3 that the kingdom will extend this voluntary cut of one million barrels per day. The source told state media the cut could be extended further and the move is aimed at supporting the stability and balance of oil markets.
