Kentucky gas prices soared 56 cents in the past week to land at $3.81, the second largest state average increase in the nation on the week.
As the conflict between Russia and Ukraine continues, the price of crude oil continues to soar, leading to higher pump prices in the U.S and, AAA expects the upward current trend to continue in step. Meanwhile, the national average for a gallon of regular unleaded rose to $4.07, a staggering 46 cents more than a week ago.
Last week, the International Energy Agency (IEA) announced a coordinated release of crude oil from its 31 member countries’ strategic reserves, including the U.S., Germany, Canada, South Korea, and Mexico, to help counter the impact of rising crude prices. On Friday, IEA said member states agreed to release a total of 61.7 million barrels from their strategic reserves to reassure markets roiled by the fallout from Russia’s invasion of Ukraine.
This amount—half of which is expected to come from the U.S.—is the largest coordinated release since IEA was founded in 1974. Despite this announcement, the impact on pricing has been limited given that the amount of oil planned for release is small in comparison to the amount that flows daily from Russia to other countries around the globe. According to IEA, Russia exports approximately 5 million barrels per day of crude oil, representing about 12% of its global trade.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 500,000 barrels to 246 million barrels last week. Meanwhile, gasoline demand rose slightly from 8.66 million barrels per day to 8.74 million barrels per day. The increase in gas demand and a reduction in total supply contribute to rising pump prices, but increasing oil prices play the leading role in pushing gas prices higher.
Monday’s national average of $4.07 is 63 cents more than a month ago and $1.30 more than a year ago. The national average has not been this high since July 2008.
Kentucky’s gas price average of $3.81 is 68 cents more than a month ago and $1.24 more than a year ago at this time.
Checking nearby, the average price for a gallon of unleaded in Ohio is at $3.83, West Virginia $3.89, Virginia $3.89, Tennessee $3.87, Indiana $3.99, Illinois $4.30 and Missouri $3.18.
The nation’s top 10 largest weekly increases: Rhode Island (+59 cents), Kentucky (+56 cents), Nevada (+56 cents), Connecticut (+56 cents), Alabama (+55 cents), Virginia (+54 cents), West Virginia (+54 cents), Massachusetts (+54 cents), New Hampshire (+52 cents) and New Jersey (+52 cents).
The nation’s top 10 most expensive markets: California ($5.34), Hawaii ($4.70), Nevada ($4.59), Oregon ($4.51), Washington ($4.45), Alaska ($4.40), Illinois ($4.30), Connecticut ($4.28), New York ($4.26) and Pennsylvania ($4.23).
At the close of Friday’s formal trading session, West Texas Intermediate increased by $8.01 to settle at $115.68. Crude prices continue to surge in response to the conflict between Russia and Ukraine. As the conflict continues, the oil markets will likely respond by increasing the price of crude oil to reflect more risk of disruption to tight global oil supplies this week. Additionally, EIA reported that total domestic crude stocks decreased by 2.6 million barrels last week to 413.4 million barrels. The current stock level is approximately 15% lower than at the end of February 2021, contributing to pressure on domestic crude prices.
AAA Blue Grass