Oil Jumps Over $75 A Barrel As Americans Hit The Road For July 4th

Oil prices jumped over $75 a barrel on Thursday, just ahead of the July 4th holiday weekend, signaling higher prices at the pump for consumers hitting the road for the holiday.

The oil prices marked a three-year-high, which Bank of America has predicted could hit $100 a barrel amid accelerating demand, CNBC reported.

U.S. West Texas Intermediate crude for August increased by 3.2% or $2.33 to $75.82 a barrel. This the highest level for the crude product since October 2018, CNBC said.

Bent crude also rose 2%, or $1.49, to $76.10 per barrel, while the WTI surged more than 50% for the year, with a slow start at about $48.50 per barrel.

The news of the record oil prices came ahead of the OPEC+ meeting with OPEC and non-OPEC energy alliance members that will take effect via videoconference at 7 p.m.ET. The OPEC+ partners have been positive about market conditions and responding to fuel demand increases going forward as the economy recovers.

The spike in oil prices come while a record level of Americans take to the roadways during the July 4th holiday weekend, as the vaccinated public feels more confident traveling and gathering in groups amid the COVID pandemic.

According to travel organization AAA, more than 47.7 million Americans will be traveling this Independence Day holiday (July 1-5), up from 34.2 million in 2020.

But it is going to cost people more to get to their destination as AAA said gas prices are the highest they have been in seven years. The organization said ahead of Thursday’s oil increase that the average gasoline price per gallon was $3.123, up from $2.179 per gallon a year prior.

“Road trippers will pay the most to fill up for the holiday since 2014," Jeanette McGee, AAA spokesperson, said in a statement.

AAA said the gasoline prices most likely will continue to climb through the end of summer.