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Cornelius News

Gas prices will likely climb more

Gas price Monday March 7

March 7. By Dave Yochum. Look to pay $3.79 to $3.89 for a gallon of unleaded in and around Cornelius today as gas prices continue to rise, even though Russian oil movements out of that country into consuming nations have not been formally sanctioned.

They might as well have been sanctioned, given the reaction of the global trading community, says oil and gas analyst Tom Kloza of Oil Price Information Service.

“This is not the end of it,” he said.

Gas prices have exceeded $4 a gallon at some stations in Eastern Carolina, the same as the AAA national average.

News last week that the US and International Energy Agency would do a coordinated release of as much as 60 million bbl of oil had no impact on a market where veteran wholesalers feel it is not safe to be short.

Ukraine Crisis

“There are no current estimates of how much oil and refined products might be constipated by bank action, credit problems, tanker travel refusals and the general uncertainty of getting paid or delayed in lifting Russian barrels. However, there is no question that the typical departure schedules of Russian oil and products is impeded with worries about more formal curtailments ahead,” said Kloza, global head of energy analysis for OPIS.

Gasoline wholesalers that have been more conservative on price increases are “sternly enforcing allocations” while others were raising prices in order to protect inventory. North Carolina remains under Executive Order No. 116, which is the COVID-19 state of emergency act.