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Yahoo
23-05-2025
- Automotive
- Yahoo
Auto Club: SoCal gas prices dip ahead of Memorial Day weekend
Southern California drivers are seeing some relief at the pump just in time for Memorial Day weekend, according to the Automobile Club of Southern California's latest Weekend Gas Watch. The latest report, published on Thursday, shows that gas prices dipped despite earlier reports that Californians wouldn't see relief at the pump during the holiday weekend. 'Southern Californians will be paying the lowest pump prices since 2021 to fill up for their Memorial Day getaways, which they will be taking in record numbers,' Auto Club spokesperson Doug Shupe said in a statement. 'Gas prices are backing off from a price spike earlier this month caused by a Northern California refinery fire and some unplanned refinery outages. According to Oil Price Information Service, those supply issues have been resolved, and refineries have increased their gasoline production.' Southern California AAA shares the best times to travel ahead of Memorial Day weekend In the Los Angeles-Long Beach region, prices dipped by two cents to $4.80 per gallon, while San Diego drivers are also paying $4.80, down three cents from last week. The Central Coast saw the biggest weekly decline, with average prices falling seven cents to $4.72 per gallon — a 45-cent drop from last year. Riverside drivers now pay an average of $4.66 per gallon, three cents less than last week and 38 cents below 2024 prices. In Bakersfield, the average is $4.73, a two-cent decrease from last week and 46 cents below last year's figure. As of Friday morning, the average price of gasoline in California stands at $4.84, while the national average is $3.19. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
01-04-2025
- Business
- Yahoo
Gas prices continue climbing in Southern California
The Brief Gas prices continue climbing across California. The average price is 16 cents more than it was one week ago in LA County. The Orange County average price is 18.7 cents more than one week ago. LOS ANGELES - Once again, Angelenos are burdened with pain at the pump. A new report found that gas prices rose for the ninth time in ten days. By the numbers The average price has risen 16 cents over the past 10 days, including 5.3 cents Saturday, its largest increase since April 5, according to figures from the AAA and the Oil Price Information Service. It rose three consecutive days, increasing 1 cent, dropped four-tenths of a cent Tuesday and resumed increasing Wednesday. The average price is 16 cents more than it was one week ago and 6.2 cents higher than one month ago but 32.5 cents less than one year ago. It has dropped $1.675 since rising to a record $6.494 on Oct. 5, 2022. The Orange County average price rose for the sixth consecutive day, increasing 1.7 cents to $4.793, a day after rising 3.9 cents. It has risen 19 cents over the past six days, including 6.4 cents Saturday, its largest increase since Sept. 28, 2023. The Orange County average price is 18.7 cents more than one week ago and 7.4 cents higher than one month ago but 31.3 cents less than one year ago. It has dropped $1.666 since rising to a record $6.459 on Oct. 5, 2022. The national average price of a gallon of gas rose nine-tenths of a cent to $3.168, a day after it was unchanged. It has increased seven of the past eight days. It is 4 cents more than one week ago and 5.4 cents higher than one month ago but 36.7 cents less than one year ago. The national average price has dropped $1.848 since rising to a record $5.016 on June 14, 2022. What's next Gas prices typically start going up this time of year and peak during the summer. The sharply lower price from one year ago is "due to tepid gasoline demand and weak crude oil prices," according to the AAA. SUGGESTED COVERAGE: Gas is under $3 in 31 states amid spring break travel, AAA says: What to know Why are gas prices going up in California? USC professor 'estimates' Californians will need to make $1,000 more next year to keep up with 2025 gas prices The Source Information provided by AAA and City News Service.
New York Times
31-01-2025
- Business
- New York Times
The World Economy Awaits Trump's First Round of Tariffs
President Trump's threats to enact stiff tariffs on Canada, Mexico and China on Saturday have left the world trading system on edge as international policymakers and markets wait to see whether Mr. Trump will follow through on actions that could set off a destabilizing global trade war. Mr. Trump has promised tariffs of 25 percent on Canada and Mexico and 10 percent on China, punishments he says are necessary to halt the flow of migrants and drugs, particularly fentanyl, into the United States. It remains to be seen whether Mr. Trump will follow through with that threat and, if he does, what imports would be subject to his levies. Mr. Trump's advisers have been weighing different scenarios, like tariffs that would apply to specific sectors, such as steel and aluminum, or levies that would be announced but not go into effect for several months, according to people familiar with the planning. But it is not clear what the president has decided. Canadian and Mexican officials have been scrambling to persuade Mr. Trump to hold off on the tariffs, engaging in last minute talks with Secretary of State Marco Rubio and trying to show the efforts they are making to police the border. Auto and energy companies are pushing the White House and the administration hard not to apply tariffs, one of the people said. President Claudia Sheinbaum of Mexico told reporters on Friday that the Mexican government had been working for months on a plan to react to possible tariffs. 'We are prepared for any scenario,' she said, adding that Mexico is 'doing everything in our power' to prevent tariffs. 'What do we want? That dialogue with respect prevail.' Speaking from the Oval Office on Thursday, Mr. Trump suggested he was ready to cut off imports from Canada and Mexico, two of America's largest trading partners and closest allies. 'We'll be announcing the tariffs on Canada and Mexico for a number of reasons,' he said. 'I'll be putting the tariff of 25 percent on Canada, and separately, 25 percent on Mexico, and we'll really have to do that.' 'We don't need what they have,' Mr. Trump said, referring to Canada and Mexico. The three countries have been governed by a trade agreement for more than 30 years, and many industries, from automobiles and apparel to agriculture, have grown highly integrated across North America. He added that tariff rates could increase over time and suggested that the tariffs might not apply to oil imports, a decision that could avoid a spike in gas prices. While the United States is the world's largest oil producer, refineries need to mix the lighter crude produced in domestic fields with heavier oil from places like Canada to make fuels like gasoline and diesel. Roughly 60 percent of the oil that the United States imports come from Canada, and about 7 percent comes from Mexico. According to Tom Kloza, the global head of energy analysis at Oil Price Information Service, if fuel producers respond to the tariffs by cutting production, gasoline prices in the Midwest could climb 15 to 20 cents a gallon, with more muted effects in other parts of the country. Mr. Trump's desire to hit allies and competitors alike with tariffs over issues that have nothing to do with trade demonstrates the president's willingness to use a powerful economic tool to fulfill his broader domestic policy agenda. The prospect of new tariffs has created considerable uncertainty about how those levies might affect America's economic outlook and certain industries. Lobbying groups representing sectors such as retail and agriculture, which would be exposed to U.S. tariffs, said this week that they were in the dark and concerned about how Mr. Trump might proceed. In a note on Friday, economists at Goldman Sachs said that Mr. Trump's comments on Thursday raised the odds that the president would hit Canada and Mexico as soon as Saturday, but that they expected tariffs to be phased in over time. 'We still do not see a sustained 25 percent tariff on both countries as the base case,' the wrote. 'Instead, we think it is more likely that Trump will announce a tariff with delayed implementation, targeted at certain imports, starting at a lower rate that rises over time, or some combination of these.' That said, Goldman's economists said that if Mr. Trump did proceed with across-the-board tariffs, it would both raise prices in the United States and slow economic growth. The potential economic implications from tariffs are also complicating matters for the Federal Reserve, which is still trying to wrestle inflation down to its 2 percent target. The Fed this week held interest rates steady, after a series of cuts, amid persistent inflation and questions about how the tariffs would play out. The economic fallout would depend on how they were structured, but the ripple effects could be broad. According to economists at S&P Global, the auto and electric equipment sectors in Mexico would be most exposed to disruption if tariffs were enacted, as would mineral processing in Canada. In the United States, the largest risks would be to the farming, fishing, metals and auto sectors. On balance, most economists expect fresh trade barriers to raise prices for U.S. businesses and households, which could lead to a temporary burst of higher inflation. Whether that escalates into a more pernicious problem will depend on whether Americans' expectations about future inflation start to shift higher in a meaningful way. Over time, economists also worry about the effects on growth, warning that trade tensions are likely to lead to less investment, more subdued business activity and slower growth. Ernie Tedeschi, the director of economics at the Yale Budget Lab, estimates that a 25 percent tariff on all Canadian and Mexican imported goods — paired with a 10 percent tariff on all Chinese imports — would lead to a permanent 0.8 percent bump in the price level, as measured by the Personal Consumption Expenditures price index. That translates to roughly $1,300 for households on average. Those estimates assume that the targeted countries enact retaliatory measures and that the Federal Reserve does not take action by adjusting interest rates. Mr. Tedeschi expects this to eventually shave 0.2 percent off gross domestic product once inflation is taken into account. Mr. Trump's top economic advisers have refuted the idea that the tariffs would fuel inflation. At his confirmation hearing this month, Treasury Secretary Scott Bessent dismissed concerns from Democrats about Mr. Trump's trade policy, suggesting that exporters from countries such as China would lower their prices in the face of higher U.S. tariffs. Mr. Bessent said last year that it would be prudent if any tariffs were phased in so that any associated 'price adjustment' could be absorbed gradually by the economy. Mr. Trump's pick to be commerce secretary, Howard Lutnick, also embraced tariffs at his confirmation hearing and pushed back against the notion that they would fuel inflation. He suggested that Canada and Mexico might be able to avoid the tariffs that Mr. Trump was dangling if they closed their borders to fentanyl. Mr. Lutnick indicated that he believed 'across the board' tariffs on countries would be most effective, arguing that China should face the highest rates and that Europe, Japan and South Korea were also treating American industries unfairly. 'We need that disrespect to end, and I think tariffs are a way to create reciprocity, to be treated fairly, to be treated appropriately,' Mr. Lutnick said.
New York Times
31-01-2025
- Business
- New York Times
Trump Tariffs Could Hurt Oil Companies and Increase Gas Prices
Oil and gas companies in the United States are bracing for the possibility that President Trump will thrust their businesses into disarray and will drive up prices at the pump by imposing 25 percent tariffs on goods from Canada and Mexico. The United States is the world's largest oil producer, but the country's refineries are designed to turn a mix of different types of oil into fuels like gasoline and diesel. Roughly 60 percent of the oil that the United States imports comes from Canada, and about 7 percent comes from Mexico. Many refineries are set up to use those imports and cannot easily switch to oil from other places. Analysts are not sure just how Mr. Trump's tariffs might ripple through the oil market — and who would bear the added expenses. The costs may not be significant if the tariffs are in place only temporarily, or if the administration makes it easy for refiners to obtain waivers to keep buying Canadian or Mexican crude without paying extra. Mr. Trump has said that the tariffs would go into effect on Saturday. On Thursday, he suggested that he might exempt oil. The oil and gas industry was one of the biggest supporters of Mr. Trump during the 2024 election, giving more than $75 million to his campaign, and the president has made helping the industry and lowering energy costs for consumers key policy priorities. Among those likely to take a hit if Mr. Trump does not exempt fossil fuels are Canadian oil producers and U.S. refiners, particularly those in the Midwest that process a lot of Canadian oil and lack a ready substitute. American consumers in regions that depend on oil from Canada also could see slightly higher prices at the pump, particularly if fuel makers were to respond by cutting production. Gasoline prices in the Midwest could climb 15 to 20 cents a gallon, with more muted effects in other parts of the country, said Tom Kloza, global head of energy analysis at Oil Price Information Service. 'It's going to be very, very messy' if Mr. Trump moves ahead with tariffs, Mr. Kloza said. 'We haven't dealt with something like this, certainly not in the modern era.' Already, refining is a tougher business than it was a couple of years ago, partly because U.S. demand for diesel has weakened. Lower profit margins in fuelmaking weighed on the fourth-quarter results of the two largest U.S. oil companies, which reported earnings on Friday. Exxon's profit for the final three months of the year inched lower to $7.61 billion, from $7.63 billion a year earlier. Production growth in places like West Texas helped to offset a more challenging market for refining. The company's results exceeded forecasts from analysts surveyed by FactSet. 'We have done the hard work to make sure that we're competitively advantaged, and that's going to hold us in good stead in any market environment,' Kathy Mikells, Exxon's chief financial officer, said. Chevron's fourth-quarter profit rose around 43 percent year-over-year, to $3.24 billion, but it came up short of Wall Street's expectations. The average price of regular gasoline on Friday was $3.11 a gallon nationally, according to AAA, the motor club, in line with prices this time last year. In the Midwest, gasoline is generally cheaper than the national average. Mr. Trump, in his first two weeks in office, has repeatedly invoked the threat of tariffs. Some policy analysts say that he is using the threats as a negotiating tool to spur countries to do what he wants. Last weekend, he announced 25 percent tariffs against another U.S. ally, Colombia, after its president balked at accepting U.S. military planes carrying deported immigrants. Within hours, Colombia acceded and Mr. Trump reversed course. The American Petroleum Institute, the oil and gas industry's main trade group, has urged the administration to exempt fossil fuels from any tariffs. 'Tariffs on crude oil, natural gas, or refined products would directly undermine energy affordability and availability for consumers while eroding the U.S. oil and natural gas industry's competitiveness both domestically and globally,' the group wrote in a December letter. Most oil produced in the United States is, in the telling of industry experts, akin to a light beer, while the crude imported from Canada and Mexico is more like a thick molasses. Refineries are set up to make gasoline, diesel and other products out of a combination of the two, commonly referred to as light oil and heavy oil. U.S. fuel makers did not appear to be stocking up on Canadian oil, Mr. Kloza of OPIS said. Valero Energy, one of the largest U.S. oil refining companies, has been planning for a wide range of scenarios and has flexibility because many of its refineries are along the Gulf Coast, near ports where oil can be imported from around the world, Gary Simmons, the chief operating officer, told financial analysts on a conference call on Thursday. Eventually, though, the company might need to cut production if buying heavier oil like the kind produced in Canada and Mexico were to become difficult, Mr. Simmons added. Chevron also said on Friday that it recognized $715 million in severance charges in the final three months of the year, signaling job cuts on the horizon. 'We'll see some organizational restructuring, and that will result in some changes to our work force,' Mike Wirth, the company's chief executive, said in an interview. Chevron has not disclosed how many employees could be affected. Employment in the U.S. oil industry has fallen roughly 25 percent over the past decade, even as oil and gas production have soared to record highs.
