Aug. 21 (UPI) — U.S. retail gasoline prices remained stable over the weekend, AAA reported Monday, but some upward momentum may be expected due to the patch of storms brewing in the Atlantic Ocean.
AAA put the national average retail price at $3.86 per gallon for Monday. That’s stable relative to Friday levels, but 28 cents higher than this time last month and within 4 cents of the price at the pump this time last year.
Demand could soften this week as many schools and universities resume classes after the summer recess. But AAA was already warning last week that prices could jump because of increased storm activity.
“The heat is returning, and we are also entering the heart of hurricane season,” Andrew Gross, a spokesperson for AAA, said. “While fewer drivers are fueling up at the moment, these looming weather concerns are a roadblock to falling pump prices.”
The National Hurricane Center last week showed four storms brewing in the Atlantic Ocean. By Monday, that grew to five — three named tropical storms, a disturbance in the Gulf of Mexico that’s expected to strengthen to a tropical storm and another disturbance off the coast of West Africa.
So far, there are no major weather-related warnings for the Gulf Coast apart from the heat. New Orleans can expect temperatures in the triple digits for much of the week. Storms in the Atlantic are unlikely to reach the Gulf of Mexico, though the storm already developing there could escalate in severity.
“Interests in southern Texas and northern Mexico should monitor the progress of this system as tropical storm watches or warnings are likely to be issued later today,” the National Hurricane Center predicted.
That could pose a threat to everything from drilling to refinery activity in the U.S. south. Refinery activity was already curbed by the excessive heat.
Commodity prices early Monday were reacting more to sluggish economic growth in China than any storm threat, however. The price for Brent crude oil, the global benchmark, was up 0.8% at the start of the trading day to reach $85.47 per barrel.
The price for crude oil accounts for the bulk of what consumers see at the pump.
