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Gas prices are high, and crude oil price is why

Crain's Detroit Business	
           Michigan's average price for gasoline remained steady at $2.85 per gallon

Wednesday's oil surge brought prices to its highest prices in more than three years, according to CBS News.

States with the highest average gasoline prices: California ($3.62), Hawaii ($3.59), Washington ($3.29), Alaska ($3.25), Nevada ($3.24), OR ($3.18), Utah ($3.11), Idaho ($3.07), Pennsylvania ($3.01) and CT ($2.99).

Prices are now more than 43 cents higher per gallon than this time past year and 11 cents higher than last month.

In International Falls, regular gas prices averaged $2.64 per gallon in the last week, according to the site.

Gas prices are still as high as they were the second week of May, with national gas prices at $2.81. Generally that means higher costs at the gas station are in the pipeline. The state's average is the same as last week, and 22 cents less than the national average.

President Trump's announcement regarding the United States pulling out of the Iran Nuclear Deal is driving up the price on crude oil.

President Trump has until Saturday to decide whether to extend the existing Iranian deal or restore penalties on one of the world's biggest oil producers.

Adding to the price mix is the summer driving season when pump prices usually spike upward. Geopolitical events, decreased global supply/OPEC cuts, expensive crude oil, record USA production and high demand have all contributed toward driving up gas prices since January. "Part of this could be the sanctions against Iran, but it could also just be higher demand".

DeHaan said if this did cause prices to go up, "it could be" long term depending on the long term response to Iran. Such a move would likely reinstate sanctions, resulting in reduced global supply and higher fuel prices. Consumers in nine states are already grappling with pump prices that have hit the $3/gallon mark.

Gas prices around the country have creeped up, mostly due to continuing efforts to switchover stocks to the more expensive summer blend to meet federal mandates by June 1.