While the price of oil is at its highest mark in four years, it also means higher prices at the pump.
AAA Oklahoma says the nearly $76 a barrel price for oil has pushed pump prices higher across the country rather than the usual drop in prices after the busy summer driving season.
In Oklahoma, the statewide average is nearly $.50 higher than a year ago at $2.72 for regular unleaded. Today’s national gas price average is $2.91, which is up three cents in the last week, up seven cents in the last month, and 39 cents higher than this time last year.
“Crude oil accounts for half of the retail pump price and crude is selling at some of the highest price points in four years,” Leslie Gamble, AAA Oklahoma, said. “That means fall and year-end prices are going to be unseasonably expensive. Even with refineries switching over to the less expensive ‘winter blend’, there’s no relief this year.”
U.S. sanctions against Iran, set to go into effect Nov. 4, and Energy Secretary Rick Perry’s recent dismissal of the idea of additional Strategic Petroleum Reserve sales, helped boost oil prices to nearly-four-year highs. While markets are still focused on the prospect of tight global supply as U.S. sanctions on Iran kick in, recent reports that Russia and Saudi Arabia have reached an agreement to increase production might help ease supply concerns.