Gas prices increase in Missouri for second straight week, up 13 cents in Cape Girardeau
CAPE GIRARDEAU, Mo. (KBSI) – Regular unleaded fuel prices are approaching $3.50 per gallon on average in the state of Missouri and are up by 13 cents per gallon in Cape Girardeau compared to this time last week. A cutback in production by OPEC+ has been the largest contributor to this increase.
AAA Public Affairs Specialist Don Redman said a slowdown in the economy would likely result in a decrease in demand.
“We may see a situation where if the economy really looks like it’s starting to slow down, you would expect to see the demand for fuel and for energy products to slow down, as well, which would perhaps minimize the effect for the cutback in OPEC, but it comes with a cost, and that is a slower economy,” he said.
Redman said this is the time of year when some oil refineries shut down to perform needed maintenance.
These shutdowns have also contributed to an increase in prices.
Historically, we see a decrease in demand around this time, so refineries can afford to shut down for a time to prepare to transition from a summer grade gasoline to a winter grade.
“It’s not a big issue for some of the refineries, some of the output being offline because the inventories usually can handle the demand for fall,” he said.
In terms of forecasting where gas prices may land, Redman said it is difficult to make an exact prediction, but he doesn’t anticipate a drastic change in the coming weeks.
“I think everybody’s looking for, ‘What will the price settle at?’ I just think in Missouri, we’re looking at a nickel more from where we are, just depending on current factors, but I think we’re starting to see things settle down,” he said. “Even if you compare today’s price to yesterday’s price, it’s off by tenths of a penny, and nobody buys gasoline by tenths of a penny, but it’s an indication that things may be slowing down a little bit.”