The price of oil is on track to set its longest run of monthly gains in five years. Futures were up Tuesday morning in New York, paving the way for a fourth-straight monthly advance.
Oil production has been disrupted in several different countries in recent months. Nigeria’s oil production is down 50 percent after a series of militant attacks. In Canada, wildfires ravaged the oil sands city of Fort McMurray, causing residents to evacuate and slowing oil production. Workers have since resumed production after the fire eased.
Islamic State lost ground in Libya after the country’s Petroleum Facilities Guard captured the coastal town of Ben Jawad, located near key oil terminals. Five members of the guard were killed and 18 people were wounded, according to Newsweek.
The Organization of Petroleum Exporting countries will hold its biannual meeting Thursday in Vienna. Analysts do not expect the cartel to reach any formal consensus on yielding production.
Gasoline prices reach 2016 high
Driving season kicked off during the Memorial Day weekend. By Tuesday, national gasoline prices hit their highest levels of 2016.
Nationwide, a gallon of gas averages about $2.32 per gallon, according to GasBuddy. Though prices are trending up, that’s still 43 cents less than a year ago when gas averaged $2.75 per gallon.
In Texas, the average price for a gallon of gas reached $2.09 per gallon.
Gasoline is predicted to increase though the end of June, before possibly leveling out. Seasonal demand normally drives up the cost of gas in the summer, but rising oil prices have also contributed to the price spike.
The cost of a barrel of oil sits just below $50 as of Tuesday afternoon. That’s nearly twice the price of the 12-year low oil reached in February, indicating the oil bust may have bottomed out.