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Gas hits $10 a gallon at California’s Chevron station a day after prices hit record levels

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Gas prices have risen to nearly $10 a gallon in parts of California, it has been revealed, as costs continue to climb amid unprecedented inflation.

On Friday night, gas prices hit a national average of $4.76, according to AAA — an increase of nearly 20 cents in the span of a week.

Along the US West Coast, the pain at the pump is even worse, with Californians now seeing a previously unseen average of $6.24 cents as well. The state saw gas costs cross the $6 mark for the first time in history this weekend.

That said, some parts of the Golden State have been more affected by the fuel cost crisis than others, with a station in Mendocino, off California’s coast, holding prices just pennies away from $10 — the highest ever in history.

The station, Schlafer’s Auto Repair, isn’t the only station in the state to have seen its gas costs rise to astronomical heights

The development comes despite recent efforts by the Organization of the Petroleum Exporting Countries (OPEC) to ramp up oil production to fuel the country’s refineries — supplies of which have reached crisis levels in recent weeks.

Gas prices have risen to nearly $10 a gallon in parts of California, such as prices at the Mendocino gas station, as costs continue to climb to new heights amid unprecedented inflation. The numbers serve as the highest recorded gas prices in US history

Meanwhile, experts remain adamant that costs will continue to rise over the summer, warning that the national average is likely to be surpasses $6 for the fall — prompting many would-be travelers to stick around during the typically rampant driving season.

“It’s really frustrating,” Arizona mom Laura Dena told Fox 5 NY Friday about rising fuel costs.

She said she and her sons usually travel to Southern California around Memorial Day weekend to escape the scorching heat seen in her home state during the summer.

However, she says that now that she needs more than $100 to fill her truck, she has reluctantly decided to stay home.

“It’s troubling,” Dena said, adding, “But there’s not much we can do.

“We have to pay the price.”

US gas prices hit a new record on Thursday — with a national average of $4,589 a gallon — and analysts at JPMorgan are now warning that number could exceed $6 by the end of the summer.  Pictured is a person at a pump in Pelatuma, California, where gas prices have already crossed $6

US gas prices hit a new record on Thursday — with a national average of $4,589 a gallon — and analysts at JPMorgan are now warning that number could exceed $6 by the end of the summer. Pictured is a person at a pump in Pelatuma, California, where gas prices have already crossed $6

analysts at JPMorgan late last month warned that the national average could exceed $6 by the end of the summer.

“There is a real risk that the price could reach $6+ a gallon in August,” Natasha Kaneva, head of global oil and commodities research at the leading investment bank, told CNN on Tuesday.

The worrying forecast comes as US gas prices soared to unprecedented heights during Joe Biden’s presidency.

The country’s current average price of gasoline, $4.58-a-gallon, is nearly double the $2.41 average seen during the previous month of former President Donald Trump’s presidency.

The number surpassed Wednesday’s previous record of $4,567, which eclipsed Tuesday’s record of $4,523, which surpassed Monday’s record of $4,470.

The surge has seen the price of gas since top $4-a-gallon in each of the 50 states — a dubious feat never before achieved.

The rapid surge — also attributed to oil producer Russia’s invasion of Ukraine — has already seen California surpass $6, with a state average of $6,061 on Thursday.

Those prices have risen since Biden was elected in November 2020, and soared earlier this year after the invasion of Ukraine, pushing gas prices up by at least 27 percent in about three months.

Meanwhile, as the European Union moves towards oil sanctions against Russia during the province’s military operations in the country, high inflation under the Biden administration has further exacerbated the problem of rising fuel costs.

And as US gasoline inventories are at their seasonal lowest since 2019, JPMorgan says the situation is likely to worsen in the coming months. families are likely to take trips and vacations.

“With demand expected to rise sharply… US retail prices could rise an additional 37% in August,” the bank wrote in a recently released report titled Cruel Summer.

“Normally,” Morgan analysts wrote in their warning, “refineries produce more gasoline ahead of the summer road trip season, stockpiling them.

“But this year, since mid-April, US gasoline inventories have fallen into the season.”

JPMorgan also warned that East Coast gasoline inventories are at their lowest level in more than a decade, reflecting above-average gasoline exports as a result of rising gas costs abroad in Europe – an increase worse than the one in the US. US

Rising tariffs have pushed fuel inventories at US and Canadian refineries that normally supply gas stations in the eastern US to crisis levels that could dip below 2008 levels, when the country entered its worst recession since the Great Depression. went through.

If exports continue at this high pace and refinery production – already near the highest range for reasonable utilization rates – falls within our expectations, gasoline inventories could continue to fall to levels below their 2008 lows and retail gasoline prices could soar. to $6/gallon or even higher,” the analysts wrote.

At that rate, analysts say, total U.S. gasoline inventories could soon fall to levels not seen since the 1950s — an event that would push gas prices even higher.

High inflation under the Biden administration has further exacerbated the problem of rising fuel costs.  Inflation started rising in April 2021 and has since risen above 8 percent

High inflation under the Biden administration has further exacerbated the problem of rising fuel costs. Inflation started rising in April 2021 and has since risen above 8 percent

Such a fall in the gas supply would lead to a 37 percent price increase, economists write, resulting in a national average of about $6.20 a gallon.

At those levels, gas prices would rise past their inflation-adjusted high of $5.38 seen in June 2008, when gas prices hit $4.11 unadjusted for inflation, according to the Energy Information Administration.

Morgan warns that unless refineries “immediately” halt most of their exports and switch to producing their own gasoline, “U.S. consumers shouldn’t expect much from pump price cuts until the end of the year.”

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