The recent dip in pump prices has reversed, with the national average for a gallon of regular gas rising 3 cents over the past week to $4.12. Upward pricing pressure on concerns that less Russian oil will enter the global market is countered by fears of a COVID-induced economic slowdown in China, the world’s leading oil consumer. These opposing forces are causing the oil price to hover around $100 a barrel. The result is gas prices holding steady or showing slight increases in many areas.
“Consumers may be catching a little break from March’s record-high prices, but we don’t expect any dramatic drops like we saw earlier in many areas,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “However, if demand concerns over what’s happening with China start to have a greater impact than the concerns about less Russian oil on the global market, we could see oil prices edge downward. That should equate to lower, or at least stable, prices at the pump.”
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by nearly 1 million barrels to 232.3 million barrels last week. Gasoline demand increased slightly from 8.73 million barrels a day to 8.86 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 prices at the pump.
Today’s national average for a gallon of gas is up three cents on the week to land at $4.12, which is 12 cents less than a month ago, and $1.23 more than a year ago.
Kentucky’s gas price average is now at $3.80, stable on the week and down 18 cents on the month. Today’s price is $1.09 more than a year ago.
Nearby, the average price for a gallon of unleaded today in Ohio is $3.76, West Virginia $3.94, Virginia $3.96, Tennessee $3.85, Indiana $3.92, Illinois $4.40 and Missouri $3.76.
The nation’s top 10 largest weekly increases: Maryland (+13 cents), Delaware (+12 cents), Kansas (+11 cents), South Dakota (+11 cents), Connecticut (+10 cents), Florida (+9 cents), Nebraska (+9 cents), Missouri (+9 cents), Rhode Island (+9 cents) and Washington, D.C. (+8 cents).
The nation’s top 10 least expensive markets: Georgia ($3.71), Arkansas ($3.74), Missouri ($3.75), Ohio ($3.75), Kansas ($3.77), Oklahoma ($3.77), Mississippi ($3.77), Texas ($3.77), South Carolina ($3.78) and Kentucky ($3.80).
At the close of Friday’s formal trading session, West Texas Intermediate decreased by $1.72 to settle at $102.07. Crude prices weakened at the end of the day due to demand concerns in Shanghai as fears of a demand-reducing slowdown in global economic activity loom. Crude prices declined despite EIA reporting that total domestic oil inventories decreased by 8.1 million barrels to 413.7 million barrels. This week, crude prices could see further reductions if demand concerns continue to drag the market down.
AAA Blue Grass