DEARBORN, MI (WKZO AM/FM) — Gas prices in Michigan have continued an upward spike, increasing 11 cents on average per-gallon from last week.
Drivers are now paying an average of $2.50 per gallon for regular unleaded, which is the highest price seen since January of 2020. This price is 32 cents more than this time last month and 12 cents more than this time last year.
Motorists are paying an average of $38 for a full 15-gallon tank of gasoline; a discount of $1 from when prices were their highest last January.
“An increase in crude utilization and increasing crude prices have contributed to higher pump prices,” said Adrienne Woodland, spokesperson, AAA – The Auto Club Group. “It’s likely that drivers will see this trend continue through the month of February.”
At the close of Thursday’s formal trading session, WTI increased by 54 cents to settle at $56.23, which is the highest settlement price of the year. Crude prices rose last week after the Organization of the Petroleum Exporting Countries (OPEC) and its production reduction agreement partners met to review compliance with their agreement to collectively reduce their crude production by 7.2 million b/d. The group decided to hold the cuts steady and expects output to remain low this year, since demand is forecasted to be lower than expected throughout 2021 due to ongoing crude demand concerns as the pandemic continues to keep travel restrictions in place.
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