Up to 16 named storms could affect gas prices
A wildcard for gas prices in the coming months is the Atlantic hurricane season, which runs from June 1 to November 30.
According to the National Oceanic and Atmospheric Administration’s Climate Prediction Center, this year’s season will likely be near normal, which means up to 16 named storms, four to eight of which could become hurricanes. If any of the severe storms reach landfall, they could affect gas production, refining or distribution. That would lead to price spikes.
But, as the summer driving season began, drivers were paying the lowest prices for gas in more than a decade. Gas prices for the Memorial Day holiday were the cheapest since 2005. They were down 42 cents per gallon compared with Memorial Day weekend 2015.
The June 5 average price of $2.36 per gallon is an increase of four cents for the week and 14 cents for the month. For the first time in 36 weeks, the retail cost of gas is above $2 a gallon in all regions.
According to the U.S. Energy Information Administration, implied gasoline demand hit nearly 9.4 million barrels per day in March, the highest since August 2015.