As oil prices rise, gas surpasses $3.50 per gallon

Gas (NG=F) prices are rising higher than they were during the same period last year. Yahoo Finance's Ines Ferré joins the Live Show to discuss possible drivers of the recent price increases.

Ferré notes that the price hikes are partially seasonal, with demand growing as more drivers hit the road. However, with the price per gallon almost $0.10 higher than a year ago, gasoline's price acceleration may also be sourced to oil (CL=F, BZ=F) rates increasing. This comes against a backdrop of OPEC cuts and Russian refinery interruptions.

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Editor's note: This article was written by Gabriel Roy.

Video Transcript

[AUDIO LOGO]

JOSH LIPTON: Consumers may feel a pinch in their wallet as gas prices rise. Here with what's driving the move higher is Yahoo Finance's Ines Ferre here with the details. Ines.

INES FERRE: Yeah, Josh. And usually, at this time of year as we're approaching the spring or in the spring, you will see oil or gasoline prices, I should say, rather go higher. And part of that has to do with that summer blend that is more expensive. Part of that is demand-driven as you have more drivers that are hitting the road.

But what we're seeing right now is that gasoline prices are higher than they were at the same time last year. So there's been a bit of an acceleration when it comes to gas prices. You're looking at the national average is at $3.53.

That's almost $0.10 higher than what this was a year ago. And this is despite the EIA just came out with data this week showing that last week, you saw gasoline demand falling. So what gives well higher oil prices? That is what has been driving this accelerated pace, if you will, of gasoline prices going higher.

And, of course, the higher oil prices is because of everything that has to do with the OPEC cuts, with the Russian refineries that have been interrupted, because of the Ukrainian drone attacks. You also have falling inventory that has increased prices.

Look there, you're looking at West Texas Intermediate above $80 a barrel. And you're also watching Brent crude that's been trading above $85 a barrel. So this has driven these prices higher.

There is some good news. And that is that BP refinery, the largest in the Midwest in Indiana, that has been restored fully. I mean, you were looking at Illinois prices that in one week went up by $0.20.

So you may see a sort of deceleration a little bit in those price hikes at the pump. And these prices have gone higher rather quickly. So there are some analysts that are also saying, look, oil is supposed to pull back a little bit from these elevated prices that we've seen them at guys.