Gasoline and Diesel Prices Rise as Crude Oil Price Soars Up in July 2023

With the rising crude oil prices, diesel and gasoline prices also soar in July 2023. The rise in oil prices has been witnessed after months of lower crude prices, diesel, and gasoline prices.

Energy Information Administration (EIA) forecasts that oil prices will remain high in the second half of 2023 and for 2024 at a moderate level. The organization also expects less production from the Organization for Petroleum Countries (OPEC) members. It anticipates petroleum consumption to an average drawdown of 0.4 million barrels per day starting from July 2023 by the end of 2024. The forecast by EIA shows the price of bent crude oil will rise to USD 80 per barrel by the end of 2024 with USD 75 per day from June 2023. In the United States, the average gas prices have risen to USD 3.565 per gallon from USD 3.543 per gallon, according to reliable sources. Similarly, diesel prices have increased from USD 3.837 to USD 3.842 within a week. The oil markets are hopeful about three weeks of oil price increase that may coincide even with the oil price rally.

For three weeks, between June and July months in 2023, the oil prices have barely crossed USD 80 per barrel. According to the recent forecasts by EIA, non-OECD petroleum and liquid fuels consumption is expected to rise by 1.6 million barrels per day from 2022 to 55.1 million barrels per day in 2023 on average. The supply from global oil markets tightens the rising production from the oil-producing countries due to oil price rally.