National average for gas is $5.01 — never seen since AAA began collecting pricing data in 2000
Washington, D.C.—The cost of a barrel of oil is over $120, nearly double last August’s price, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand remains robust as the summer driving season ramps up. As a result, the national average for a gallon of gas surged and is 15 cents more than a week ago, 58 cents more than a month ago, and $1.94 more than a year ago. Today’s national average is $5.01 — an all-time high never seen since AAA began collecting pricing data in 2000.
“Based on the demand we’re seeing, it seems high prices have not really deterred drivers,” said Andrew Gross, AAA spokesperson. “If prices stay at or above $5, we may see people start to change their daily driving habits or lifestyle, but it hasn’t happened yet.”
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 800,000 bbl to 218.2 million bbl last week. Meanwhile, gasoline demand grew from 8.98 million b/d to 9.2 million b/d as drivers continue to fuel up for the summer driving season, typically a time when gas demand increases. This dynamic between decreased supply and increased demand is contributing to rising prices at the pump. Coupled with increasing crude oil prices, this means that the price of gas will likely remain elevated for the near future.
The nation’s top 10 largest weekly increases: West Virginia (+28 cents), Montana (+27 cents), Colorado (+25 cents), Kansas (+23 cents), Virginia (+23 cents), Missouri (+22 cents), North Dakota (+22 cents), Indiana (+22 cents), Ohio (+22 cents) and New Mexico (+21 cents).
The nation’s top 10 most expensive markets: The nation’s top 10 most expensive markets: California ($6.43), Nevada ($5.65), Alaska ($5.56), Illinois ($5.56), Washington ($5.54), Oregon ($5.53), Hawaii ($5.53), Arizona ($5.31), Washington, D.C. ($5.26) and Indiana ($5.05).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 84 cents to settle at $120.67. Although prices ended lower on Friday due to the rising value of the dollar, crude prices increased earlier last week in response to global supply concerns amid expected demand increases, particularly as China emerges from lockdowns that reduced crude demand. Crude prices have increased despite EIA reporting that total domestic stocks increased by 2.1 million bbl to 416.8 million bbl last week. However, the current storage level is still approximately 12 percent lower than a year ago, contributing to rising crude prices. Crude prices could rise further this week if EIA’s next report shows an inventory decline.
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