The prospect of summer drivers crowding the US highways generates steep gasoline gains, a sign of economic recovery and an advantage for the pandemic-ravaged energy industry.
Raised by the recovery in oil and growing consumer demand, gasoline prices at U.S. pumps averaged $ 2.88 per gallon last week, according to AAA. This marks an increase of 30% over this period last year, when the pandemic blockages affected fuel consumption.
Rising prices are a gift for the start of the season for fuel producers, including Valero Energy Corp and Phillips 66, after a bruised year, helping to turn energy into the best performing sector this year in the S&P 500. A proxy for profit margins at refineries, calculated from the difference between the future of gasoline and crude oil, have recently approached the highest level in three years, at over $ 24 a barrel.
Some analysts still see gains. Prices tend to rise closer to summer, when millions of Americans are heading to vacation spots, and oil refineries are mixing more expensive fuel that will not evaporate in the heat.
Rising gas prices are joined by a recent downturn in other commodities, such as copper, as well as improved employment and spending data as signals that the economy is booming. At the same time, high fuel prices are biting some consumers and businesses, while raising concerns about rising inflation.