Why Midwesteners Might Face Higher Gas Prices

By: Anneken Tappe · February 01, 2024 · Reading Time: 2 minutes

The Trans Mountain Expansion

Americans across the Midwest might have to get used to paying higher prices at the pump, thanks to the expansion of a pipeline carrying Canadian oil to the gulf.

Canadian producers previously had to pump their oil through America’s midwest to reach the Gulf of Mexico, lowering costs for U.S. refiners along the way. And that was also visible in domestic gas prices along that corridor. But now, a more than 700-mile-long pipeline through the Pacific will allow them to circumvent the previous path.

The Trans Mountain Expansion

The completion of the Trans Mountain expansion means that Canada will have more pricing power, when its prior exports were marked by discounts for transportation costs, crude quality, and a smaller size of its pool of buyers. But this might be due to change.

Read more reporting here .

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender