After an early spring surge, the national average for a gallon of gas drifted up and down by a fraction of a cent before settling a penny higher at $3.53 on March 28. But the break may be temporary, as gas pump prices will likely resume a spring increase.
“Uncertainty of the impact of Ukraine’s targeting of Russia’s oil infrastructure likely spiked oil prices recently,” said Andrew Gross, AAA spokesperson. “But those concerns have abated somewhat for now, and gas prices are settling into a pattern similar to last year when the usual seasonal increase was slow and steady.”
According to new data from the Energy Information Administration (EIA), gas demand dipped slightly from 8.81 to 8.72 million b/d last week. Meanwhile, total domestic gasoline stocks increased by 1.3 million bbl to 232.1 million bbl. Lower demand would typically contribute to pushing pump prices lower or slowing increases, but rising oil prices have kept them elevated instead.
Thursday’s national average of $3.53 is 24 cents more than a month ago and 10 cents more than a year ago.
Quick Stats
- Since March 21, these 10 states have seen the largest increases in their averages: Utah (+26 cents), Idaho (+17 cents), Alaska (+15 cents), Nevada (+12 cents), Washington (+12 cents), Oregon (+11 cents), Wyoming (+7 cents), California (+7 cents), North Dakota (+6 cents) and Washington, D.C. (+6 cents).
- The nation’s top 10 most expensive markets: California ($5.02), Hawaii ($4.69), Washington ($4.49), Nevada ($4.38), Oregon ($4.25), Alaska ($4.07), Illinois ($3.90), Arizona ($3.78), Utah ($3.76) and Washington, D.C. ($3.69).
Oil Market Dynamics
At the close of Wednesday, March 27’s formal trading session, WTI decreased by 27 cents to settle at $81.35. Oil prices fell after the EIA reported that total domestic commercial crude stocks increased by 3.2 million bbl to 448.2 million bbl last week. Although stocks increased when compared to a year ago, the current stock level is 25.5 million bbl lower than at the end of March 2023.
