By Tom Latek
Kentucky Today
The nation’s average price of gasoline has fallen 10.7 cents over the last week and stands at $3.94 per gallon, according to GasBuddy data compiled from more than 12 million individual price reports.
However, the national average is still up 9.5 cents from a month ago and is 85.6 cents per gallon higher than a year ago. The national average price of diesel fell 5.1 cents in the last week and stands at $5.275 per gallon. In Kentucky, the average gas price statewide at mid-day on Monday was $3.53 per gallon, a 12 cent drop from a week ago.
“Average gasoline prices declined in 47 states over the last week while diesel fell in 39, with the national average price of gasoline posting a double-digit drop per gallon,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Diesel’s decline was roughly half that of gasoline, in part due to continued pressure on refined product markets from ongoing Ukrainian attacks on Russian oil refineries.”
He noted that the wild ride in gas prices is continuing. “Iran is pushing back against a reopening of the Strait of Hormuz, and oil prices edged modestly higher in Sunday night trading, signaling that the recent relief may not last. With the Strait remaining closed, upward pressure on fuel prices could return quickly, and if things don’t go well, the national average could climb to its highest level ever recorded this late in the calendar year. For now, enjoy the dip, but keep a close eye on how the Strait situation develops in the days ahead.”
West Texas Intermediate Crude (WTI) was $79.62 per barrel, modestly above last week. Brent Crude gained $1.45 to $85.00 compared to $82.95 a week ago, a muted move reflecting a market that has largely priced in a prolonged standoff as the war enters its sixth month.
“Last week oil prices fell at the start of the week on expectations that flows through the Strait could improve, but as flows remain restricted, oil prices started to recover,” stated Giovanni Staunovo, UBS commodities analyst. “This week all energy agencies will issue their monthly oil market reports, with market focus on how quickly oil inventories fell in recent months, and if there are changes on their demand and supply forecasts.”