Gasoline demand back-tracked for the week ending Oct. 9, decreasing from 8.90 million barrels per day to 8.58 million barrels per day, according to the Energy Information Administration (EIA).
Demand has decreased, even as total domestic stocks fell by 1.6 million barrels to 225.1 million barrels. Meanwhile, imports fell to their lowest rate since Sept. 18. Combined, lower demand and imports have contributed to pump prices falling for the majority of the country.
“Today’s national average is $2.16, which is two cents less than a week and month ago and 49 cents cheaper than last year,” said Lori Weaver Hawkins, public and government affairs manager, AAA Blue Grass. “Decreases in U.S. gasoline demand, supply and imports pushed the national and 44 state gas price averages cheaper on the week.”
On the week, a few Central states saw much larger decreases: Indiana (-6 cents), Michigan (-6 cents), Ohio (-5 cents) and Kentucky (-5 cents), which could be attributed to an increase in regional stock. A penny gas price increase was seen in these states since last Monday: Utah ($2.40), New Jersey ($2.24), Alaska ($2.50), Georgia ($2.00), South Dakota ($2.10) and Hawaii ($3.24).
In Kentucky, the average gas price dropped another 5 cents to land at $1.95. The Commonwealth tied for the second-largest drop in prices in the nation, week over week.
Gas Prices Continue Lower Around the Bluegrass
Today’s average of $1.95 in Kentucky is just 2 cents less than a month ago. Today’s gas price in Kentucky is well below the Commonwealth’s average of $2.47 seen a year ago. In Lexington, the average price is at $1.91, down 8 cents from last week but still a penny higher than a month ago.
Surrounding communities have also seen gas prices fall in the past week, all of them more dramatically than either the Kentucky or national changes in price. In Nicholasville, the average price is down 5 cents, now at just $1.87. Georgetown is down 7 cents, now averaging $1.90. Versailles is down 8 cents to land at $1.90, while Winchester is down 7 cents at $1.87. Richmond is down 4 cents, landing at $1.96.
Owensboro and Elizabethtown are the communities with the lowest prices in Kentucky, both at $1.85. The high spot in the Commonwealth is Louisville, at $2.10.
Quick stats
The nation’s top 10 largest weekly decreases: Indiana (-6 cents), Washington, D.C. (-6 cents), Michigan (-6 cents), Ohio (-5 cents), Kentucky (-5 cents), Florida (-4 cents), Wisconsin (-3 cents), West Virginia (-3 cents), South Carolina (-3 cents) and North Carolina (-3 cents).
The nation’s top 10 least expensive markets: Mississippi ($1.84), Missouri ($1.84), Texas ($1.85), Oklahoma ($1.87), Arkansas ($1.87), Louisiana ($1.89), Alabama ($1.90), South Carolina ($1.91), Tennessee ($1.93) and Kansas ($1.94).
Oil Market Dynamics
At the close of Friday’s formal trading session, the benchmark West Texas Intermediate (WTI) decreased by 8 cents to settle at $40.88. Domestic crude prices decreased at the end of last week due to market concern regarding an increase in coronavirus infections worldwide. As more social restrictions are introduced, crude demand will likely decline. The price drop occurred despite EIA’s new weekly report showing that total domestic crude inventories declined by 3.8 million barrels to 489.1 million barrels. For this week, ongoing demand concerns could cause prices to decrease further.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
From AAA Blue Grass
