The recent announcement that OPEC+ plans to slash output by 2 million barrels per day led to the price of oil creeping above $90 a barrel for the first time in several weeks, where it remains today. With crude making up the biggest share of gasoline, the higher cost of oil usually equates to higher prices at the pump as well.
Meanwhile, more drivers fueled up last week, pushing demand higher and gas prices with them. The combination of these factors helped to the national average pump price for a gallon of gasoline jump 12 cents over the past week to hit $3.91. Meanwhile, Kentucky’s average price rose 13 cents to settle at $3.52.
“On the national level, gas prices in California are finally cooling off, as more refineries come back online after undergoing maintenance. That, along with the switch to cheaper winter blends should help stabilize the national average again,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “Closer to home, we’ve seen the Ohio refinery fire, stronger demand and the OPEC+ announcement continue to help push our prices upward.”
According to new data from the Energy Information Administration (EIA), gas demand increased nationally from 8.83 million b/d to 9.47 million b/d last week. Total domestic gasoline stocks decreased significantly by 4.7 million bbl to 207.5 million bbl. High gasoline demand, amid tight supply, has led to higher pump prices nationwide.
Today’s national average of $3.91 is 19 cents higher than a month ago and 65 cents more than a year ago.
Kentucky’s average for a gallon of unleaded is now $3.52, climbing a penny overnight, 13 cents higher on the week and 16 cents higher compared to a month ago. A year ago, the average in Kentucky was $3.08.
Lexington has seen less change locally, with the city’s gas price average now at $3.42, steady overnight, but down a penny from a week ago and only 4 cents higher on the month. A year ago, the Lexington average was $3.13.
In Northern Kentucky, Covington is at $3.85, steady overnight, soaring 22 cents on the week and 42 cents higher on the month. A year ago, Covington was at $3.04.
In Eastern Kentucky, motorists in Morehead are finding the gas price average at $3.59, which is stable overnight, up a penny on the week and 19 cents lower on the month. A year ago, the average price in Morehead was $3.15. Those in Hazard are seeing the gas price average at $3.55 today, up a penny overnight, up 2 cents on the week, 4 cents lower on the month. A year ago, the average in Hazard for a gallon of regular was $3.02.
Pikeville is at $3.38 today, stable overnight, 3 cents lower on the week and 19 cents higher on the month. A year ago, the average in Pikeville was $3.10. Ashland is higher at $3.42 today, up a penny overnight, 2 cents lower on the week and 13 cents lower on the month. A year ago, the price in Ashland was $3.14.
Around the Commonwealth, the highest gas prices remain primarily in the northern and eastern tier of counties, while the lowest prices are primarily scattered. The highest county-level average gas prices today are in Pendleton and Robertson counties at $3.89, followed by Bracken, Campbell and Grant counties at $3.88. The cheapest spot for gas in the commonwealth today can be found in Simpson County at $3.24.
Checking nearby, the average price for a gallon of regular today (and change compared to last week) in Ohio is at $3.92 (+.23), West Virginia $3.53 (+.09), Virginia $3.49 (+.18), Tennessee $3.39 (+.20), Indiana $4.19 (+.21), Illinois $4.40 (+.24) and Missouri $3.47 (+0.15).
Across the nation, the high spot remains California at $6.33, which is down 5 cents from last week, followed by Arizona at $4.56. The lowest state averages can be found in Georgia at $3.23, followed by Mississippi at $3.25 and Texas at $3.26.
The nation’s top 10 largest weekly increases: Maryland (+24 cents), Delaware (+24 cents), Illinois (+24 cents), Ohio (+23 cents), Louisiana (+22 cents), Tennessee (+21 cents), Indiana (+21 cents), Alaska (+20 cents), Mississippi (+20 cents) and North Carolina (+20 cents).
The nation’s top 10 most expensive markets: California ($6.33), Alaska ($5.54), Oregon ($5.53), Nevada ($5.44), Washington ($5.40), Hawaii ($5.21), Arizona ($4.56), Idaho ($4.42), Illinois ($4.40) and Michigan ($4.35).
At the close of Friday’s formal trading session, West Texas Intermediate increased by $4.19 to settle at $92.64, while Monday saw the WTI drop $1.67 to land at $90.97 at the end of the day’s formal trading session. Crude prices increased last week after OPEC and its allies including Russia, known as OPEC+, announced intentions to cut crude production by 2 million b/d next month. Although crude prices have surged, the pricing impact may be short-lived as demand concerns continue to weigh on the market. For this week, crude prices could reverse course if the market continues to see indicators of weakening demand due to ongoing COVID-19 lockdowns in China and a slowdown in the economy as fears of recession grow, which could see crude prices decline due to falling demand. Additionally, EIA’s latest weekly report showed that total domestic crude inventories declined by 1.4 million bbl to 429.2 million bbl.
AAA Blue Grass