The national average for a gallon of gas has been rising leisurely since March 7, moving a mere two cents higher to $3.41. However, with the cost of oil crossing the $80 per barrel mark and gas demand popping with warmer temps and better weather, change may be coming to the pump. Another critical factor is the arrival of more expensive summer blend gas, which tends to increase pump prices by 10 to 15 cents.
“This is the time of year we normally see pump prices start to rise,” said Andrew Gross, AAA spokesperson. “And while prices have been rather pokey so far, they should begin to accelerate and move higher very soon.”
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 9.01 to 9.04 million b/d last week. Meanwhile, total domestic gasoline stocks dropped by 5.6 million bbl to 234.1 million bbl. Higher gas demand, amid tightening supply, has pushed pump prices higher.
Thursday’s national average of $3.41 is 16 cents more than a month ago but five cents less than a year ago.
Quick Stats
- Since March 7, these 10 states have seen the largest increases in their averages: Texas (+10 cents), Alaska (+10 cents), Oregon (+9 cents), Washington, D.C. (+9 cents), Utah (+8 cents), New Mexico (+8 cents), Washington (+8 cents), Montana (+7 cents), Arizona (+6 cents) and Idaho (+5 cents).
- The nation’s top 10 most expensive markets: California ($4.87), Hawaii ($4.71), Washington ($4.24), Nevada ($4.14), Oregon ($3.98), Alaska ($3.76), Illinois ($3.70), Arizona ($3.64), Washington, D.C. ($3.57) and Pennsylvania ($3.50).
Oil Market Dynamics
At the close of Wednesday, March 13’s formal trading session, WTI increased by $2.16 to settle at $79.72. Oil prices jumped after Ukrainian drones hit Russian refineries. The extent of the damage is unclear, but repairs could curtail Russian petroleum product exports, including diesel, and lead it to import products it needs. Additionally, the EIA reported that total domestic commercial crude stocks decreased by 1.5 million bbl to 447 million bbl last week.
