After several weeks of seemingly declining gasoline prices, the day may be fast approaching that sees an end to the streak. In fact, across the U.S., some gas stations have already been passing along the increase in price as oil prices rise. Many blame the higher oil prices on turmoil developing in Egypt, concerned it may spread.
"After blaming higher gasoline prices on refineries for much of the early spring and summer, it now seems that higher oil prices may be to blame for an expected up tick in the national average," said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan. "Oil prices have silently been tracking higher after tension in Egypt started to impact the market, driving oil prices higher. In turn, gasoline prices have begun to stage a rally as well. Oil closed last week at its highest level in over a year, and it may lead to a gentler rally in retail gas price than what we saw earlier this year, but a rally none the less," DeHaan said.
This coming on the heels of a continued rise in domestic production of oil in the United States, reaching its highest level since the 1990s as the U.S. pumps over 220 million barrels per month, or over 7 million barrels per day.
Egypt, on the other hand, cited for a reason for higher oil prices, pumps less than 600,000 barrels per day, or well under 10% of what the United States pumps.
Whatever the reason for rising oil prices, it will likely contribute to more frowns at the gas pump as United States and Canadian gas prices may rise following oil's rising value. It has been over a year since West Texas Intermediate crude oil last traded at similar prices.