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Marketplace All-in-One

Could extreme heat cause a gas price creep?

Marketplace All-in-One

Marketplace

News, Business

4.51.4K Ratings

🗓️ 3 August 2023

⏱️ 7 minutes

🧾️ Download transcript

Summary

Oil refineries aren’t designed to operate in high heat, but U.S. facilities are in Texas and Louisiana — where average temperatures have been at least 95 degrees. Dialing back production plus extreme weather brought on by a hot summer could bump up gas prices. And that’s on top of OPEC+ curbing output. After that, July job report expectations and how inflation is triggering emigration out of Argentina.

Transcript

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0:00.0

How hot, hot weather can make gasoline more expensive.

0:05.8

I'm David Brancaccio.

0:07.4

Gas prices are creeping up again.

0:09.2

The oil producers Cartel OPEC plus has been curbing production, but also the hot weather

0:14.0

has been hurting refineries.

0:15.7

The automobile association puts the national average up 7% from one month ago.

0:20.7

Here's Marketplace's Nancy Marshall-Genzer.

0:23.0

Our summer heat waves is affecting the refineries that turn oil into gasoline.

0:27.9

We aren't designed to operate at very high temperatures above 95 degrees.

0:32.6

Many U.S. refineries are in some of the hottest places in the country, Texas and Louisiana,

0:38.1

with average temperatures of at least 95 degrees, so they've been forced to dial back production.

0:44.6

Refineries can also be damaged or even closed because of hurricanes.

0:49.0

Hurricane season won't end until this fall, and the ocean is warmer than usual this summer,

0:54.1

and water fuels hurricanes, making them stronger and bigger.

0:58.1

Of course, the price of oil has the biggest impact on the cost of gas.

1:02.2

AAA says it accounts for almost 50% of the price at the pump, and the national average

1:07.3

is about $3.82 a gallon.

1:10.2

OPEC is cutting back on production in an effort to push prices up even more.

1:15.4

I'm Nancy Marshall-Genzer, for Marketplace.

1:19.1

Experts are expecting another solid, but not crazy.

1:22.2

A lot report on hiring and steady unemployment when the official numbers for July come out

1:26.6

tomorrow morning.

...

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