Local drivers are in for a treat this week as pump prices are on the decline.
The national gas price average dropped by four cents on the week to $2.60, despite a jump in gasoline demand and a draw in gasoline stocks. That is the largest one-week decrease since gas prices started to increase more than six weeks ago. Today’s average is a nickel cheaper than last month and 21-cents cheaper than last year at this time.
Refinery maintenance across the country continues, though utilization rates have increased in the last week. This could mean further declines to the national average in the weeks ahead if demand drops.
“On the week, more than half of all states saw gas prices decrease,” said Jenifer Moore, AAA spokesperson. “A handful of Great Lakes and Central states saw the largest declines at the pump, while pump prices primarily increased in the West Coast and Rockies regions.”
Four Great Lakes and Central states top the charts for the largest weekly decreases in the country: Ohio (-14 cents), Indiana (-14 cents), Michigan (-14 cents) and Kentucky (-11 cents). Illinois (-6 cents) and Wisconsin (-5 cents) round out the top 10 list. All states in the region have cheaper week-over-week averages with state averages ranging from $2.89 to $2.63.
Great Lakes and Central States
Across the region, state averages are cheaper on the week, month and year. Motorists in this region have the largest savings compared to last year. Pump prices range, on average, from 18 to 36 cents cheaper. On the month, pump prices are a nickel to 14 cents less.
Oil market dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI increased by 43 cents to settle at $56.66. Crude prices increased last week after EIA’s report revealed that total domestic crude inventories fell by 1.7 million bbl to 433.2 million bbl last week. Growth in crude exports, from 3.24 million b/d to 3.68 million b/d helped to push crude inventories lower. When compared to last year at this time, export rates are 1.5 million b/d higher. If total domestic crude inventories decrease again, crude prices could increase.
