Gas prices surged in August amid oil's supply crunch

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Gas prices surged in August amid oil's supply crunch
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Across the board all the energy components saw a month-over month increase in prices.

Electricity rose 0.2 percent in August after decreasing 0.7 percent in July. Natural gas jumped 0.1 percent over the month, following a 2.0-percent increase in July. Fuel oil also rose by 9.1% in last month.

Despite the month-over-month rise, the energy index is down 3.6% when compared to 12 months ago. All of the components within the sector, except for electricity, are down on a year-over-year basis. A gas pump is inserted inside an Audi vehicle at a Mobil gas station in Beverly Boulevard in West Hollywood, California, U.S., March 10, 2022. Picture taken March 10, 2022. REUTERS/Bing Guan

Oil's is on a three-month rally, up around 30% since late June amid a tight supply squeeze following OPEC+ production cuts and unilateral output reductions extended by Saudi Arabia and Russia. "The math is simple—declining supply and rising demand equal higher prices," Adam Turnquist, chief technical strategist for LPL Financial, recently wrote in a note to investors.

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