Crude oil prices saw a significant decline of $5 per barrel on the week, down to $62.32 per barrel at Friday’s close. Prices are declining as market concerns grow that a rise in coronavirus infections across the globe could bring about a decline in crude demand. The downward crude price trend could spell good news for motorists.
“Crude oil prices saw not only a dramatic drop on the week, but the price per barrel is at the cheapest in three months,” said Lori Weaver Hawkins, public and government affairs manager, AAA Blue Grass. “If this downward trend continues and less expensive prices are sustained, Americans can expect to see relief at the pump in the near future.”
The average gas price in Kentucky is down a full 7 cents on the week, landing at $2.86. That’s still 4 cents cheaper than a month ago, but 79 cents higher than a year ago this time.
While the national gas price average of $3.16 is just 2 cents cheaper than last Monday, by the end of this week it could be even less. All eyes are on gasoline demand, which has declined for three straight weeks. The Energy Information Administration’s (EIA) latest reading puts demand at 9.3 million barrels per day. That is a healthy demand considering pandemic concerns, but still about 6% below the same week in August 2019. The softer demand readings have pushed gasoline stock levels over 228 million barrels.
“Cheaper crude, softening demand and growing stock levels equal the right combination for cheaper prices at the pump, which many Americans would likely welcome after such an expensive summer,” added Weaver Hawkins.
The national average of $3.16 is 98 cents more than a year ago and 56 cents more than two years ago.
For the most part, gas prices across Kentucky have been on the decline after peaking at the height of summer.
The nation’s top 10 largest weekly decreases: Ohio (−9 cents), Washington, D.C. (−8 cents), Kentucky (−7 cents), Indiana (−7 cents), Michigan (−6 cents), Illinois (−5 cents), Kansas (−4 cents), Florida (−4 cents), Wisconsin (−4 cents) and Texas (−3 cents).
The nation’s top 10 least expensive markets: Mississippi ($2.78), Texas ($2.81), Louisiana ($2.82), Alabama ($2.82), Tennessee ($2.84), Missouri ($2.84), Arkansas ($2.85), Kentucky ($2.86), Oklahoma ($2.86) and South Carolina ($2.86).
At the close of Friday’s formal trading session, WTI decreased by $1.37 to settle at $62.32. Price decreases occurred despite EIA’s latest report showing that total domestic crude stocks decreased by 3.3 million barrels to 435.5 million barrels last week. For this week, crude prices could decrease further if demand concerns persist due to surging coronavirus infection rates across the globe.
AAA Blue Grass
