U.S. gasoline prices climbed for a second consecutive week despite falling oil benchmarks, with the national average rising to $3.11 per gallon and diesel hitting $3.676, the highest since August 2024, according to GasBuddy. GasBuddy analyst Patrick De Haan cited tight inventories and strong seasonal demand as key factors, noting diesel remains under the most upward pressure due to export strength and regional supply constraints.
The price increase comes as crude benchmarks see a small rebound. As of morning trading on Tuesday at 9 a.m. ET, the U.S. crude benchmark, West Texas Intermediate (WTI) was trading at $67.04, up 0.09% on the day, and Brent was trading up 0.20% at $69.35.
Economists expect rising energy costs to contribute visibly to June’s Consumer Price Index, set for release Wednesday. According to Reuters, headline inflation is forecast to rise 0.3% on the month, lifting the annual rate to 2.7%, the highest since February. Analysts say fuel prices and imported goods are the main drivers.
The Associated Press reports that new tariffs enacted by the Trump administration on steel, electronics, and household goods are now beginning to pass through to consumers, lifting prices on appliances and furniture, among other products. Some of these pressures are expected to ease later this year, but are likely to elevate inflation data for at least two more months.
According to MarketWatch, Citigroup economist Veronica Clark believes the Federal Reserve could still move forward with rate cuts in September, if energy and trade-related pressures are deemed temporary.
By Charles Kennedy for Oilprice.com
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