Oil prices recovered from early losses in a tumultuous session on Thursday, as Chinese officials promised to loosen curbs in Shanghai, potentially tightening global energy supplies further, while the currency fell from recent gains. Crude benchmarks resumed their wild swings, with Brent and US crude both climbing about $5 a barrel in a matter of hours, recouping losses from earlier in the week.
The gas prices in California are the highest in the country and they have passed the national average which dropped from its heights this month. The national average for a gallon of gasoline dropped 9 cents from a week ago. According to AAA, it stands at $4.24, and the average in California is $5.866 per gallon.Lawmakers in California have been under pressure to offset this surge. California Democrats disclosed a new proposal that would send a $400 rebate to every taxpayer in the state. The money would go to all California taxpayers.
The lawmakers said that$400 rebate would cover the current 51 cents-per-gallon gas tax for one full year, 52 trips to the pump for most vehicles. They also believe a refund is a proper approach than suspending the gas tax – which would impact funding for important transportation projects and offers no guarantee that Oil companies would pass on the savings to consumers
According to Patrick De Haan, head of petroleum analysis for GasBuddy, gas prices in Los Angeles have broken a new record, making it the first large city in the US to achieve an average of $6 for a normal gallon of fuel. This proved surge comes after the city reached $5 per gallon a few weeks ago.