Despite less than stellar domestic demand, the national average for a gallon of gas fell only two cents since last week. The primary culprit is the cost of oil, which is creeping closer to $80 a barrel. Since oil is the main ingredient in gasoline, higher oil costs tend to put upward pressure on pump prices.
“The current streak of daily pump prices either falling or staying flat started on September 19,” said Andrew Gross, AAA spokesperson. “It appears this run is in jeopardy, and we may see prices edge a bit higher. But if the cost of oil eventually hits reverse and dips again, pump prices will likely follow suit. So stay tuned.”
According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.48 to 8.21 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 1.8 million bbl to 218.2 million bbl. Lower gas demand has contributed to limiting pump price increases amid rising oil prices.
Today’s national average of $3.24 is 26 cents less than a month ago and 26 cents less than a year ago.
Quick Stats
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Utah (−16 cents), Indiana (−10 cents), Ohio (−9 cents), Arizona (−9 cents), Wyoming (−8 cents), Michigan (−8 cents), Montana (−8 cents), Colorado (−8 cents), North Dakota (−8 cents) and California (−8 cents).
- The nation’s top 10 least expensive markets: Texas ($2.74), Mississippi ($2.76), Oklahoma ($2.76), Georgia ($2.79), Louisiana ($2.81), Missouri ($2.81), Arkansas ($2.82), Alabama ($2.88), Kansas ($2.89) and Iowa ($2.91).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by $1.45 to settle at $77.86. Oil prices increased due to market concerns that OPEC+ will maintain its production reduction agreement through 2024. A tight oil supply could elevate prices if demand moves higher than expected. Additionally, the EIA reported that total domestic commercial crude inventories increased by 1.6 million bbl to 449.7 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
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