The cost of gasoline has continued to slide due to falling oil prices. The global oil market has seen lower prices since the U.S. and its allies agreed to significant releases of oil reserves. Also weighing down oil prices is the fear of resurgent COVID-19 infections in China and its potential for an economic slowdown in one of the world’s largest oil-consuming nations. Domestically, the national average for a gallon of gas has fallen to $4.11.
“The average price for a gallon of gas has fallen below $4 in much of the country, just as we’ve seen here in Kentucky,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “And these lower prices may be a boon to drivers thinking ahead to a Great American Road Trip as warmer weather rolls in.”
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 2 million barrels to 236.8 million barrels last week. Gasoline demand increased slightly from 8.5 million barrels a day to 8.56 million barrels a day. Although supply and demand factors would have typically supported elevated pump prices, the fluctuating oil price continues to be the main factor influencing pump prices. Pump prices will likely face downward pressure if oil prices remain below $100 per barrel.
Monday’s national average for a gallon of gas is $4.11, which is eight cents less than a week ago, 22 cents less than a month ago, and $1.25 more than a year ago.
Kentucky’s gas price average is now at $3.85, down 8 cents on the week and 20 cents on the month, but still $1.15 more than a year ago.
The average price for a gallon of unleaded in Ohio is at $3.86, West Virginia $4, Virginia $3.98, Indiana $3.00, Illinois $3.74, Missouri $3.67 and Tennessee $3.89.
The nation’s top 10 largest weekly decreases: Washington, D.C. (−14 cents), Connecticut (−11 cents), Indiana (−10 cents), Ohio (−10 cents), South Carolina (−10 cents), Rhode Island (−10 cents), Georgia (−9 cents), Wisconsin (−9 cents), Florida (−9 cents) and Delaware (−9 cents).
The nation’s top 10 least expensive markets: Missouri ($3.67), Oklahoma ($3.67), Kansas ($3.67), Arkansas ($3.70), Texas ($3.71), Maryland ($3.74), South Carolina ($3.75), Georgia ($3.76), Wisconsin ($3.76) and Nebraska ($3.78).
At the close of Friday’s formal trading session, West Texas Intermediate increased by $2.23 to settle at $98.26. Overall crude prices declined last week following EIA’s weekly report, which showed U.S. crude oil inventories rose by 2.4 million bbl to reach 412.4 million bbl. For this week, crude prices could decline further if the EIA’s next report shows another increase in total domestic supply. Additionally, market watchers will be keeping a close eye on China’s COVID lockdown of Shanghai and the impact it may have on crude oil demand.
AAA Blue Grass