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Gas prices hit record high for Labor Day weekend
CNBC • • general
Key Points:
- Gasoline prices have reached a record high for Labor Day, with the national average for regular unleaded hitting $4.15 per gallon, surpassing the previous record of $3.82 set in 2012, according to AAA.
- Diesel prices also reached a record $5.90 per gallon, significantly higher than last year's $3.71, driven by constrained global oil supplies amid ongoing conflicts.
- Crude oil prices remain elevated due to supply disruptions from the Iran War and damage to refineries in the Middle East and Russia, with daily oil transport through the Strait of Hormuz sharply reduced.
- U.S. gasoline inventories are 6% below average, contributing to higher prices, but the early transition to winter-grade gasoline starting September 1 may provide some relief at the pump.
- The future of gasoline prices largely depends on geopolitical developments, particularly any agreements that might reopen the Strait of Hormuz to oil traffic.
