California gas prices hit an average price of $4.658 a gallon Friday, about a penny short of the highest recorded average price of $4.671 for regular gasoline set in October 2012, according to AAA
. The national average dropped slightly to $3.416 Friday. AAA said heavy rainstorms in Northern California have pinched production capacity, which then trickled down to Southern California -- just like what happened in Louisiana with Hurricane Ida.
Read MoreGas prices have been increasing steadily throughout the year as fuel demand grows around the globe and suppliers have been unable -- or unwilling -- to produce more oil. Although US oil prices have surged by more than 65% this year, US oil production is about 14% below the levels of the end of 2019, before Covid erupted. Gasoline prices have surged to seven-year highs and Wall Street banks are warning that $100 or even $120 oil is on its way.
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