Despite ominous overseas news, a pop in domestic gasoline demand, and oil prices rising to the mid-$80s per barrel, the national average for a gallon of gas climbed just three pennies to $3.56 since last week.
“Renewed Ukrainian attacks on Russia’s oil infrastructure and increasing tension in the Middle East spiked oil prices recently,” said Andrew Gross, AAA spokesperson. “And with the cost of oil accounting for roughly 60% of what we pay at the pump, there will likely be some upward pressure on prices.”
According to new data from the Energy Information Administration (EIA), gas demand rose from 8.72 to 9.23 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 4.2 million bbl to 227.8 million bbl. Higher demand and rising oil prices will likely nudge pump prices higher.
Today’s national average of $3.56 is 21 cents more than a month ago and six cents more than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest increases in their averages: Indiana (+19), Arizona (+19), California (+17), Ohio (+15), New Mexico (+15), Utah (+11), Alaska (+10), Kentucky (+10), Nevada, (+10), Idaho (+9).
The nation’s top 10 most expensive markets: California ($5.20), Hawaii ($4.69), Washington ($4.57), Nevada ($4.49), Oregon ($4.33), Alaska ($4.18), Arizona ($3.97), Illinois ($3.91), Utah ($3.87), and Idaho, ($3.75).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by 28 cents to settle at $85.43. Oil prices edged higher despite EIA reporting an increase of 3.2 million barrels from the previous week. At 451.4 million barrels, U.S. crude oil inventories are about 2% below the five-year average for this time of year.
Like Newport Buzz? We depend on the generosity of readers like you who support us, to help with our mission to keep you informed and entertained with local, independent news and content. We truly appreciate your trust and support!
