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Why are gas prices rising when they usually drop this time of year?

Historically, prices fall as cold weather approaches, so why is this year different?

HOUSTON — You've probably noticed if you've had to drive anywhere lately gas prices are on the rise and show no sign of stopping. 

In fact, Bank of America is predicting that crude oil will continue to rise through June of next year. But not everyone is so doom and gloom. Chevron told CNN last week that oil prices should not stay high too long.

Historically drop in colder weather

Gas prices should not be going up right now at least if history has anything to say about it. Usually, gas prices rise in the spring when stations switch over to the more expensive summer blend and demand is driven up by people hitting the road. 

August and September are the last two months when the summer blend is required, so historically prices fall after that 5 to 10 cents a gallon.

Demand up, supply down

So why are prices going up right now? Demand is up as the pandemic eases in a lot of places, people want to hit the road again to visit family and friends they haven't seen in a while. 

High natural gas prices in Europe also has some facilities switching over to a relatively cheaper alternative oil. 

Plus, supply isn't keeping up, the U.S. is producing less oil now than it did before COVID.

All of this is adding up at the gas tank, which is bad news for drivers.

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