The national average for a gallon of regular gasoline rose a nickel since last week to hit $3.48. Robust demand for gasoline and rising oil prices are the driving factors for the recent uptick in pump prices.
“Oil prices finally crested and have now settled above the $70 per barrel mark after weeks of hovering just below it,” said Andrew Gross, AAA spokesperson, “and gas demand is very robust. These two factors will cause drivers to see prices increase for now.”
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.96 million to 9.15 million b/d last week. Meanwhile, total domestic gasoline stocks decreased substantially by 2.9 million bbl to 226.7 million bbl. Increased demand amid tighter supply has contributed to pushing pump prices higher. If demand continues to rise, pump prices will likely follow suit.
Today’s national average of $3.48 is 13 cents more than a month ago but 75 cents less than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest changes in their averages: Indiana (+15 cents), Ohio (+14 cents), Colorado (−14 cents), Delaware (+12 cents), Iowa (+12 cents), Kentucky (+12 cents), Illinois (+11 cents), Michigan (+11 cents), Arizona (+10 cents) and Texas (+9 cents).
The nation’s top 10 least expensive markets: Mississippi ($3.01), Arkansas ($3.06), Oklahoma ($3.06), Kansas ($3.06), Missouri ($3.10), Alabama ($3.14), South Carolina ($3.15), Louisiana ($3.15), Texas ($3.15) and Montana ($3.19).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by 23 cents to settle at $72.97. Oil prices declined slightly yesterday due to market concerns about oversupply as oil demand continues to rise. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 7.5 million bbl to 473.7 million bbl last week.
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