Archive for the ‘Fuel’ Category

Michael Green Contact TileGas prices have fallen for nine consecutive days, reaching today’s average of $2.33 per gallon. Gasoline demand remains on track to set a new all-time high for the 2016 summer driving season, however, crude oil remains relatively less expensive than recent years which is contributing to direct savings at the pump.  Drivers are saving a nickel per gallon on the week, but are paying five cents per gallon more on the month. Averages are down 46 cents per gallon versus this same date last year, attributed year-over-year surpluses, and these savings are likely to continue as supply appears more than capable of keeping pace with growing demand.

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Pump prices generally peak during the summer months, due to imbalances in supply and demand.  Unlike many recent years, supply appears to be meeting the growing demand and as a result prices have held relatively steady and markedly lower than one year ago. On the whole, refineries are keeping up with growing demand and the latest data from the U.S. EIA shows that the market is well supplied. Additionally, expectations of increased production from Western Canada and the U.S. are likely to keep global crude oil prices relatively lower. The combination of the abovementioned factors is contributing to prices at the pump remaining at some of their lowest levels since 2005, and these comparative savings should persist, barring and major disruptions in production or supply.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2.86), Hawaii ($2.75), Alaska ($2.68), Washington ($2.65), and Michigan ($2.59).
  • The nation’s top five least expensive markets are: South Carolina ($2.03), Mississippi ($2.07), Arkansas ($2.09), Oklahoma ($2.09) and New Jersey ($2.11).
  • Prices are down double-digits in several Great Lake States week-over-week—Ohio (-18 cents), Indiana (-18 cents) and Michigan (-15 cents)—following a string of unplanned refinery issues and distribution challenges that had caused prices to jump over the past several weeks.

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West Coast

The West Coast leads the nation, with four of the top five most expensive states located in the region: California ($2.86), Hawaii ($2.75), Alaska ($2.68) and Washington ($2.65).  Gasoline supplies in the region are reportedly at six-month lows due to rising demand; however, production is approaching year-to date-highs and prices in the region remain relatively steady. States located on the West Coast are posting some of the largest year-over-year discounts, led by Alaska (-74 cents) and Nevada (-69 cents), and prices are down in every state in the region by more than 50 cents per gallon over this same period.

Rockies

Retail averages in the Rocky Mountain states are relatively steady, moving by +/- 3 cents on the week.  Utah (-5 cents) is the only state posting a savings of a nickel or more on the month, and drivers in the state are also benefiting from significant yearly savings (-64 cents).  Gas prices in the region are below the $2.50 per gallon benchmark and are expected to remain moderately priced in the near term.

Great Lakes

Pump prices in the Great Lakes remain volatile and continue to be impacted primarily by imbalances in supply and demand. Although pump prices are down in every state in the region on the week, Michigan ($2.59), Illinois ($2.58) and Ohio ($2.50) are ranked in the nation’s top 10 most expensive market for retail gasoline. Expectations of ongoing supply challenges in Michigan prompted the state to extend its emergency energy declaration through July 13 and operations at ExxonMobil’s Joliet, IL refinery were disrupted earlier in the week by an unspecified issue with one of its units. Despite these reports, Ohio (-18 cents), Indiana (-18 cents) and Michigan (-15 cents) are posting the nation’s largest weekly savings and the latest data from the U.S.EIA points to the region increasing its gasoline production.

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Mid-Atlantic and Northeast 

Despite being home to one of the nation’s top 10 most expensive markets—Washington, D.C. ($2.54)—on the whole, gas prices in the region are relatively moderate and remain below the $2.50 per gallon benchmark.

Gas prices are down in every state in the Northeast on the week, with the largest weekly savings experienced by drivers in Delaware (-5 cents), Maryland (-3 cents), Maine (-3 cents) and New Jersey (-3 cents). Consumers in the region are also benefitting from noticeable year-over-year savings, with averages down by more than 50 cents per gallon in Delaware (-56 cents), New York (-52 cents), Connecticut (-51 cents) and New Jersey (-51 cents).  Total gasoline inventories in the region are reportedly healthy and pump prices should remain relatively steady in the region during this year’s summer driving season.

Southeast

The South Atlantic region remains the nation’s least expensive market for retail gasoline, with six of the nation’s top 10 least expensive markets located in the region. South Carolina ($2.03), Mississippi ($2.07) and Arkansas ($2.09) are the nation’s least expensive markets and prices are down on the week in every state in the region.

Magellan Midstream Partners announced the reopening of the company’s pipeline that runs through Texas, and full operations resumed over the weekend. The pipeline was taken offline for repair following the flooding that occurred in the region earlier in the month. Demand for gasoline appears to be growing in the region and supplies have fallen over the past few weeks. Despite this increasing demand, gasoline supplies remain ample in and are above year-over-year levels, providing consumers with a cushion that is likely to keep prices relatively lower.

Central States

Gas prices in the Central region of the continent remain relatively low and Oklahoma ($2.09), Missouri ($2.12) and Tennessee ($2.13) are ranked in the nation’s top 10 least expensive markets. Consumers in Missouri (-7 cents), Oklahoma (-6 cents) and Minnesota (-5 cents) have seen prices fall by a nickel or more week-over-week and the region overall remains well supplied. Magellan’s pipeline in Kansas remains offline for repair; however supply appears to be capable of offsetting this outage.

Oil Market Dynamics

Crude oil prices continue to swing on speculations of increased production and market dynamics related to the geopolitical issues. Both primary global benchmarks, West Texas Intermediate and Brent Crude, opened the week with gains credited to questions surrounding whether the U.K will exit the European Union, and what, if any impact it will have on the global oil market and the U.S. dollar. A vote is scheduled for later this week.  News about U.S. gasoline demand and the U.S. dollar are also expected to influence crude oil prices in the near term – both factors tend to lead to fluctuations in the price drivers pay at the pump.

After reaching its lowest settlement price since May 13 earlier in the week, WTI closed out Friday’s formal trading session on the NYMEX, up $1.77 to settle at $47.98 per barrel.
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.

  • Posted in Fuel
  • Comments Off on Gas Prices Drop for Nine Consecutive Days

Michael Green Contact TileThe national average price of gas reached a new 2016 high over the weekend, and today’s average of $2.38 per gallon is the most expensive average since September 2015.  Gas prices have moved higher by two cents per gallon on the week and 16 cents per gallon on the month. Although pump prices have increased for 28 of the past 33 days, consumers continue to benefit from yearly savings and prices are down 42 cents per gallon compared to a year ago.

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The cost of crude oil has moved higher over the past few weeks, which has made gasoline more expensive to start the summer driving season. Crude oil prices have increased due to unexpected disruptions in places like Canada and Nigeria, while questions continue to mount over future production in Venezuela. Since early April, the cost of crude oil has increased by more than $13 per barrel to the highest levels since 2015. With all other factors being equal, a $1 per barrel change in the price of crude oil can increase gas prices by 2.4 cents per gallon. Prices may continue to fluctuate on the heels of news related to global oil supply and the U.S. dollar, which could have a major impact on what drivers pay for gasoline this summer.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2.86), Michigan ($2.74), Hawaii ($2.73), Ohio ($2.68) and Alaska ($2.67).
  • The nation’s top five least expensive markets are: South Carolina ($2.08), Mississippi ($2.10), Arkansas ($2.12), New Jersey ($2.14) and Louisiana ($2.15).
  • Despite increasing for 28 of the past 33 days, the national average remains at its lowest price for this same date since 2005.
  • Gas prices in the Midwest are rivaling averages typically experienced by drivers on West Coast due to planned and unplanned refinery maintenance, combined with healthy demand for gasoline.

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West Coast

Retail averages on the West Coast are relatively steady and have moved by three cents or less over the past week. California ($2.86) is the nation’s most expensive market for retail gasoline, and regional neighbors Hawaii ($2.73) and Alaska ($2.67) are the only two states in the region also ranked in the nation’s top five most expensive markets. Consumers in the region continue to benefit from the largest yearly savings, with pump prices in nearly every state in the region discounted by more than 50 cents per gallon.  In fact, the largest year-over-year savings in the price of gas are seen in the West Coast states of: Nevada (-71 cents), Alaska (-71 cents) and California (-68 cents).

Conditions at the ExxonMobil Torrance, CA refinery are reportedly improving and two units previously offline are scheduled to be restarted this week. The latest data from the U.S. EIA points to gasoline inventories shrinking in the region, however, gasoline production is growing which could help balance the scale and keep gas prices relatively steady over the near term.

Great Lakes

Pump prices in the Great Lakes states continue to climb higher due to tightening supply and healthy demand for gasoline. Michigan ($2.74) is the nation’s second most expensive market for gas, and the Great Lakes states of Ohio ($2.68), Illinois ($2.66) and Indiana ($2.61) join in the rankings of the nation’s top 10 most expensive markets. The nation’s largest price increases over the past few weeks have occurred in states located in this region. Gas prices are up double digits in Michigan (+23 cents), Ohio (+21 cents), Illinois (+18 cents), Indiana (+17 cents) and Wisconsin (+13 cents) versus two weeks ago.

Headlining the supply challenges in the region is the recent shutdown of a segment of the West Shore pipeline, located in Wisconsin. This segment is reportedly undergoing repair and inspections and may be offline for several weeks while the work is being completed. Operational challenges are also being reported at Marathon’s Detroit, MI refinery and ExxonMobil’s Joliet, IL plant.

Despite these supply issues, refinery production has increased over the past few weeks, while supplies are still about nine percent higher than a year ago. In response to recent distribution issues, both Michigan and Wisconsin’s governors took action extending the hours that drivers transporting fuel are permitted to stay on the road. In the near term, gas prices may remain volatile with summertime driving fueling high demand.

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Central States

Pump prices in the region remain some of the cheapest nationwide with Oklahoma’s average at $2.15, Missouri at $2.19 and Kansas at $2.19 per gallon. Magellan is reporting that a segment of its pipeline, located in Kansas, was taken offline due to heavy rainfall, which caused a portion of the pipeline to be exposed. Service is likely to be suspended for several weeks while the pipeline undergoes repair. Supply in the region is reportedly ample and is believed to be capable of offsetting any shortages resulting from this incident.

 

Gulf Coast

Despite experiencing severe weather, which can sometimes cause prices to move higher due to supply disruptions, gas prices in the Gulf Coast remain relatively low. Every state in the region is represented in the nation’s top 10 least expensive markets, and Mississippi ($2.10), Arkansas ($2.12) and Louisiana ($2.15) are ranked in the nation’s top-five least expensive markets.

The Magellan Midstream Partner’s pipeline is reportedly under repair, following being shut down last week due to flooding in Texas. The pipeline delivers product to a number of markets in the region and its outage might impact regional fuel distribution. Gas prices in the region appear to be unaffected by the outage and are down on the week in every state located in the Gulf Coast. Best estimates suggest that the pipeline will return to operation before the end of the month, and in the interim the company is attempting to address any shortages by altering its delivery schedule.

Southeast

The Southeast is home to the nation’s least expensive market, South Carolina ($2.08). Tropical Storm Colin brought heavy rains and tropical-storm-force winds to the region last week, yet gas prices held steady over this period. Contrary to common expectations, with the exception of West Virginia (+ fractions of a penny), prices fell in every state located in the region week-over-week.

Oil Market Dynamics

After reaching new 2016 highs, crude oil prices retreated to close out the week due to news of a strengthening U.S. dollar and data showing an uptick in the number of U.S. drilling rigs in operation. Both benchmarks opened the week by extending this trend of sliding prices, as concerns of revived production out of the U.S. and global demand concerns begin to resurface. At the close of Friday’s formal trading session on the NYMEX, WTI closed down $1.49 and settled at $49.07 per barrel.

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.

Michael Green Contact TileTightening supply combined with strong gasoline demand contributed to pump prices moving higher over the past week. Today’s average price of $2.36 per gallon represents an increase of four cents per gallon since last week’s Memorial Day Holiday, and drivers are paying 14 cents per gallon more than one month ago to refuel their vehicles. Year-over-year discounts persist due to crude oil prices remaining relatively low, but discounts are beginning to narrow and have closed to 40 cents per gallon versus this same date last year. Additional information about the price at the pump can be accessed on the newly released AAA Gas Prices website, which includes enhanced features and a fresh design.

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Drivers are taking to the roads at a record-setting pace, and gasoline demand remains on target to reach unprecedented highs during this year’s summer driving season. Gasoline production is reportedly keeping pace with growing demand, yet unexpected events with production or distribution could lead to higher prices given the fact that millions of Americans are taking road trips this month.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2.83), Hawaii ($2.71), Alaska ($2.65), Washington ($2.62), and Michigan ($2.60).
  • The nation’s top five least expensive markets are: South Carolina ($2.10), Mississippi ($2.11), Arkansas ($2.13), Oklahoma ($2.13) and Texas ($2.15).
  • The national average moved higher for 25 of the past 26 days, for a total increase of 25 cents per gallon.
  • Today’s average is the lowest for this time of year since 2005.

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West Coast

A number of refineries in California are reporting challenges, including the newly restarted ExxonMobil Torrance, Calif. plant and Chevron’s El Segundo, Calif. refinery. Reduced gasoline production in the state has historically led to price spikes based on the region’s relative isolation from other markets and its unique fuel specifications, but ample supply in the region is appearing keep prices relatively steady on the week (+/- 3 cents).

States in the region continue to post some of the nation’s highest averages at the pump: California ($2.83), Hawaii ($2.71), Alaska ($2.65) and Washington ($2.62). Nevertheless, the region is doing much better than a year ago with prices at least 50 cents per gallon cheaper: California (-79 cents), Nevada (-76 cents), Alaska (-73 cents), Hawaii (-60 cents), Arizona (-56 cents) and Oregon (-53 cents).

Midwest

Fuel supplies have declined in the Midwest over the past month due to lingering refinery issues, and as a result, drivers in the region are paying some of the nation’s highest averages at the pump. Four of the nation’s top 10 most expensive markets are located in the region: Michigan ($2.60), Ohio ($2.60), Illinois ($2.53) and Indiana ($2.51). Meanwhile, drivers in Ohio (+12 cents), Michigan (+9 cents), Kentucky (+9 cents) and Indiana (+7 cents) have seen prices jump more than a nickel per gallon on the week. Additionally, the largest monthly increases in gas prices are seen in Ohio (+41 cents), Michigan (+38 cents) and Indiana (+33 cents), and drivers in every Midwestern state are paying at least a dime more per gallon over this same period.

Refineries in the Midwest have recently increased production to the highest rates since March, though output continues to lag behind last year’s levels. There is hope that the region might soon experience price relief if production continues to increase.

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Gulf Coast

On the whole, the Gulf Coast remains home to some of the nation’s lowest averages for retail gasoline. Three of the nation’s five least-expensive markets are located in the region: Mississippi ($2.11), Arkansas ($2.13) and Texas ($2.15). Unplanned refinery maintenance and severe weather are reportedly impacting pump prices in the region and prices moved higher on the week by a nickel or more in Texas (+6 cents) and Louisiana (+5 cents).

Pump prices in the region could fluctuate in the near term due to flooding in Texas, which prompted the closure Magellan Midstream Partner’s pipeline. This pipeline transports products from Gulf Coast refineries to distribution terminals located both in Texas and outside of the region, and is expected to be out of service for approximately two weeks. Supply in the region could be impacted due to its closure, and Magellan is reportedly looking for alternative supply options.

Oil Market Dynamics

Crude oil prices opened the week moving higher as geopolitical tensions in Nigeria threaten to disrupt the country’s production. The lower-than-expected U.S. job growth rate also contributed to expectations that the Fed would refrain from increasing its interest rate. This decision could weaken the U.S. dollar, which typically leads to higher oil prices. At the close of Friday’s formal trading session on the NYMEX, WTI closed down 55 cents to settle at $48.62 per barrel.

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.

Michael Green Contact Tile( Washington, May 31, 2016) The 2016 summer driving season is officially underway and drivers are paying the lowest gas prices for this time of year in more than a decade. Gas prices for yesterday’s Memorial Day holiday were the cheapest since 2005 and were down 42 cents per gallon versus last year’s holiday. Today’s average price of $2.32 per gallon represents an increase of three cents per gallon on the week, and consumers are paying 11 cents more per gallon on the month.

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This year’s summer driving season is expected to be characterized by higher-than-normal gasoline demand, and demand remains on pace to test record levels reached in 2007. Refineries nationwide are working in preparation for what is likely to be record breaking season and if they are able to keep pace, pump prices should remain relatively lower.

A wildcard for gas prices in the coming months is the Atlantic Hurricane Season, which runs from June 1 – November 30. According to the National Oceanic and Atmospheric Administration’s Climate Prediction Center, this year’s season will likely be near normal, which means of the 10-16 named storms, four to eight could become hurricanes. Should any of these severe storms or hurricanes reach landfall, production, refining and distribution could be impacted. This can lead price spikes in regional markets along the coast and in areas that rely upon crude oil and refined product from these regions.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2.81), Hawaii ($2.70), Alaska ($2.61), Washington ($2.60) and Washington, D.C. ($2.51).
  • The nation’s top five least expensive markets are: Mississippi ($2.09), Texas ($2.09), South Carolina ($2.10), Arkansas ($2.11) and Louisiana ($2.11).
  • Pump prices averaged $2.32 per gallon for Memorial Day, down 42 cents per gallon versus last year’s holiday.
  • Gas prices averaged $2.25 per gallon in May, which was 44 cents per gallon less than a year ago and the cheapest average for the month since 2005.

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West Coast

ExxonMobil’s Torrance, Calif. refinery has returned to production and is helping to balance regional gasoline supply with growing seasonal demand. Gasoline production in the region is reportedly at its second-highest level for the year, and pump prices on the West Coast have held relatively steady on the week (+/-3 cents). Total gasoline inventories in the region are characterized as unseasonably high and the market appears to be well supplied. As a result, the region is well-represented in the rankings of the top ten largest yearly savings led by: California (-88 cents), Nevada (-80 cents), Alaska (-70 cents), Hawaii (-61 cents) and Arizona (-60 cents).

California ($2.81) and Hawaii ($2.70) remain the nation’s two most expensive markets for retail gasoline, and four of the nation’s top five most expensive markets are also located in the region. Gas prices on the West Coast are generally more expensive due to higher costs associated with getting fuel to market and specific regulations designed to help improve air-quality.

Gulf Coast

The Gulf Coast remains home to the nation’s least expensive markets for retail gasoline, Mississippi ($2.09) and Texas ($2.09).  The region continues to weather the impacts of reduced production, due to a number of refineries conducting unplanned maintenance. The latest data from the U.S. EIA reflects a draw in gasoline stocks in the region, but inventories remain well over year-ago levels, and pump prices held relatively steady on the week (+/- 3 cents).

As the 2016 Atlantic Hurricane Season gets underway, attention will be focused on this region because it is home to over 45 percent of the U.S.’s total petroleum refining capacity. Severe weather can disrupt operations in this region, which can lead to shortages in supply, and historically we have seen this lead to spikes in the price at the pump nationwide.

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Midwest

The Midwest is posting the nation’s largest decline in gasoline inventories, which fell for the 15th week straight to 2016 lows. In advance of the Memorial Day Holiday, Michigan’s Governor Rick Snyder issued a state of emergency to address potential supply concerns attributed to an outage at Marathon’s Detroit refinery, and supply is described as tight throughout the region. A number of refineries in the region are also reporting challenges, and reduced production, combined with sustained demand, are believed to be behind prices moving noticeably higher in the region.

Gas prices in Michigan ($2.50) and Illinois ($2.48) join in the rankings as the nation’s top 10 most expensive markets, and Indiana (+8 cents), Iowa (+6 cents) and Illinois (+6 cents) are posting the nation’s largest increases in the price of gasoline on the week. Prices are up by a dime or more per gallon in nearly every Midwestern state versus one month ago, and the refinery utilization rate in the region remains the second-lowest nationwide.  Pump prices may remain volatile in the coming weeks as long as refineries issues continue.

East Coast

Gasoline stocks reached their highest level on record for this time of year, imports to the region are also robust and the market is expected to remain well supplied in the near term.  The Northeast is showing the largest year-over-year growth in vehicle miles traveled, followed by the South Atlantic region. This growth in demand appears to be offset by the region’s abundant supply, which should help keep a lid on prices as we enter the busy summer driving season.

Oil Market Dynamics

Over the past week both global crude oil benchmarks, Brent and West Texas Intermediate, exceeded the $50 per barrel threshold due to expectations of tightening supply. The wildfires in the Canadian Oil Sands and geopolitical tensions in Nigeria and Libya helped to boost the price. Crude oil is also reportedly gaining strength on a weakening U.S. dollar which makes oil less expensive for countries holding other currencies. Attention is now focused on OPEC’s next meeting, scheduled for June 2, though the cartel may continue its current course of action and refrain from cutting production to help balance the market.

At the close of Friday’s formal trading session on the NYMEX, WTI closed down 15 cents to settle at $49.33 per barrel.

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.

Michael Green Contact Tile(WASHINGTON, May 23, 2016) Gas prices are at their highest point for the year as we approach the Memorial Day holiday, and the national average has increased for 12 days in a row. Today’s average of $2.28 per gallon is up six cents per gallon on the week and 15 cents per gallon on the month. Despite this increase, drivers remain on target to pay the lowest prices for the Memorial Day holiday since 2005. AAA projects more than 38 million Americans will travel this Memorial Day weekend, which is an increase of 700,000 compared to a year ago. That is the second-highest Memorial Day travel volume on record and the most since 2005. Nearly 34 million (89 percent) holiday travelers will drive to their Memorial Day destinations, an increase of 2.1 percent over last year.

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Quick Stats

  • The nation’s top five most expensive markets are: California ($2.80), Hawaii ($2.66), Washington ($2.59), Alaska ($2.58) and Nevada ($2.49).
  • The nation’s top five least expensive markets are: Mississippi ($2.05), South Carolina ($2.06), Arkansas ($2.06), Texas ($2.07) and Missouri ($2.07).
  • For the first time since August 2015, drivers in every state and Washington, D.C. are paying averages above $2 per gallon.

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West Coast

California ($2.80) and Hawaii ($2.66) are the two most expensive states in the nation, but prices have remained relatively steady over the past week. Gasoline inventories are posting a surplus in comparison to last year and gasoline production in the region is also on par with year-ago levels.  As a result, drivers in the region are benefitting from some of the nation’s largest yearly savings in the price at the pump. The West Coast states of California (-97 cents), Nevada (-82 cents), Alaska (-69 cents), Arizona (-63 cents) and Hawaii (-63 cents) lead the nation and are posting the largest year-over-year discounts in the price of gas.

Gulf Coast

Drivers in Gulf Coast states continue to pay some of the nation’s least expensive prices at the pump.  Mississippi ($2.05) is the nation’s cheapest state, and six of the nation’s top 10 least expensive markets are also located in this region. Consumers in the Gulf Coast have seen prices climb higher on the week with every state posting an increase of a nickel or more per gallon at the pump. Gas prices are reportedly responding to a number of refineries in the region going offline to conduct unplanned maintenance, including Marathon’s Galveston Bay, Texas plant, which is one of the country’s largest and most complex refineries. Despite the region’s production challenges, the market remains well supplied with gasoline and prices are expected to remain relatively low.

Midwest

Regional gasoline inventories decreased for the 14th consecutive week. Interruptions in crude oil deliveries to refineries in the Midwest, due to fires in the Canadian Oil Sands, are challenging the ability of the local market to meet growing demand. Pump prices continue to swing in the region and the Midwestern states of Ohio (+13 cents), Michigan (+13 cents) and Indiana (+11 cents) lead the nation, posting the largest week-over-week increases in the price of gas. Minnesota (+23 cents), Michigan (+21 cents), Wisconsin (+20 cents) and Ohio (+20 cents) rank in the nation’s top 10 largest monthly increases, and every state in the region is posting double-digit increases over this time period.

Planned and unplanned refinery maintenance is also causing prices to fluctuate in the region. Output at BP’s Whiting, Indiana plant and the BP-Husky plant in Toledo, Ohio are expected to be limited for the next few weeks. Growing gasoline demand within the region, combined with supply challenges, are likely to contribute to prices remaining volatile leading into the summer driving season.

East Coast

One of the largest refineries on the East Coast, the Philadelphia Energy Solutions refinery complex, experienced a fire Friday afternoon. The extent of the damage is still being assessed, and regardless of any downtime associated with this incident, prices in the region are expected to remain relatively steady due to the abundant supply of gasoline and inventories in the New York Harbor region.

Oil Market Dynamics

Global crude oil prices recently moved higher due to unexpected declines in oil production in various parts of the world, such as Canada and Nigeria. This rally was short lived and the market once again reflected a bearish sentiment following reports of a strengthening U.S. dollar and questionable global demand. The United States’ role as swing producer is also garnering attention, with domestic production falling to its lowest levels since September 2014. Market watchers are paying close attention to how domestic producers are responding to changes in the global price of crude and the impact of their actions on the global oil prices.  At the close of Friday’s formal trading session on the NYMEX, WTI closed out the week down 41 cents to settle at $47.75 per barrel.

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.

Gas Prices Remain Near 2016-High

May 16th, 2016 by AAA

Michael Green Contact Tile(WASHINGTON, May 16, 2016) The national average price of gasoline increased slightly over the past week, and it is likely that prices are heading for a new 2016 high in the coming days. Gas prices are rising due to more expensive crude oil costs brought about by wildfires in Canada and supply disruptions in other oil-producing countries. Today’s average price of $2.22 per gallon for regular unleaded gasoline represents an increase of 11 cents per gallon on the month, though drivers continue to enjoy a substantial year-over-year discount of 48 cents per gallon.

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Gasoline demand regularly increases leading into the summer driving season, and this year has been no exception. According to last week’s supply report from the Energy Information Administration, U.S. gasoline demand hit its highest mark of the year at 9.66 million barrels per day, which was the highest number since August and 4.4 percent higher than the same period last year. While domestic gasoline inventories reportedly decreased by about one million barrels, supplies are still some 14 million barrels higher than a year ago. In response to this seasonal increase in demand, refineries nationwide are ramping up production, although some facilities, particularly in the Great Lakes region, have been impacted by the fires in Alberta, Canada.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2.80), Hawaii ($2.67), Washington ($2.55), Alaska ($2.52) and Nevada ($2.48).
  • The nation’s top five least expensive markets are: Arkansas ($1.99), Texas ($1.99), Louisiana ($2.00), Mississippi ($2.00) and Oklahoma ($2.00).
  • Averages are down in nearly every state year-over-year, with the largest yearly savings experienced by drivers on the West Coast: California ($1.02), Nevada (-81 cents), Alaska (-69 cents), Arizona (-62 cents), Utah (-59 cents) and Oregon (-59 cents).
  • Gas prices have increased the most month-over-month in Idaho (+28 cents), Utah (+25 cents), Washington (+23 cents) and Oregon (+23 cents).

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West Coast

Drivers on the West Coast continue to pay the nation’s highest averages for gasoline, and the nation’s top five most expensive markets are all in this region: California ($2.80), Hawaii ($2.67), Washington ($2.55), Alaska ($2.52) and Nevada ($2.48). Gasoline stocks continue to exceed last year in the region, which should keep prices relatively steady as more drivers take to the roads. The recent restart of the ExxonMobil refinery in Torrance, California also should help improve regional supplies ahead of the summer driving season.

Gulf Coast

On the other end of the spectrum, the Gulf Coast remains the nation’s least expensive markets for gas, led by Arkansas ($1.99), Texas ($1.99), Louisiana ($2.00), Mississippi ($2.00) and Oklahoma ($2.00). Pump prices are typically lower in this part of the country, based on its proximity to a large number of refineries and relatively low state fuel taxes. While gasoline supplies in most regions have seen draws in recent weeks, Gulf Coast stocks reportedly surged last week by more than two million barrels. With ample supplies and robust production, prices within the region should remain on the lower end of the national spectrum entering the busy summer driving season, provided there are no unexpected disruptions.

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Midwest

As has often been the case, volatility has characterized pump prices in the Midwest in recent weeks. Many states in the region reflected double-digit increases two weeks ago, then drops of ten cents or more last week, only to see large gains over the past seven days, led by Indiana (+9 cents), Ohio (+8 cents) and Kentucky (+8 cents).

The fires in Alberta have been burning in a part of Canada that is rich in oil sands, and there has been a significant decline in production. Canadian oil is often cheaper than crude from other parts of the world, and in recent years U.S. refiners have increasingly relied on Canadian imports. Midwestern refineries in particular have changed their production methods to take advantage of heavy Canadian crude oil, which arrives by pipeline. The recent decline in Canadian production has impacted the regional cost of oil and is likely contributing to more expensive gas prices in the Midwest.

East Coast

The Department of Energy reported last week that gasoline inventories were sharply lower, down 2.2 million barrels, on the East Coast. However, the region continues to be well supplied with fuel, and prices have been largely steady in the region over the past week.

Oil Market Dynamics

Global oil prices began this week pointed higher as market watchers continue to evaluate how recent supply disruptions may impact the glut of global crude oil. This includes the impact of wild fires in Canada and ongoing issues in the Middle East, North Africa, Nigeria and Venezuela.

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate crude oil was down 49 cents on the day, but up several dollars per barrel on the week to settle at $46.21.

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.

  • Posted in Fuel
  • Comments Off on Gas Prices Remain Near 2016-High

Michael Green Contact Tile(WASHINGTON, May 9, 2016) The national average price of gas declined slightly on the week, and it is possible that prices have begun to stabilize has refineries increase production to meet record-high demand. Today’s average price of $2.21 per gallon represents an increase of 17 cents per gallon on the month, and prices have moved higher for 23 of the past 31 days. Despite this recent trend higher, retail averages are down by one cent per gallon on the week, and drivers continue to benefit from year-over-year discounts, saving 45 cents per gallon on the year.

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According to the latest data from the U.S. EIA, total U.S. gasoline supplies are at their highest levels to start May on record. Historically gasoline demand increases leading into the summer driving season, and this year so far is no different. However, lower gas prices are contributing to drivers taking to the roads at record levels and the 2016 summer driving season is expected to rival 2007 when gasoline demand hit an all-time high.

Gasoline demand reached its fourth-highest weekly estimate for 2016 and remains well above year-over-year levels. Although the market is well supplied with product, the notable growth in gasoline demand could cause pump prices to become volatile leading into the summer driving season. Refineries nationwide are ramping up production, which should help increase supplies in regional markets. This is good news for the average driver, because if supply can keep pace with demand, averages should remain relatively low and drivers should continue to benefit from comparative savings at the pump.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2. 80), Hawaii ($2. 64), Washington ($2.49), Nevada ($2.48) and Alaska ($2.46).
  • The nation’s top five least expensive markets are: Oklahoma ($1.95), Kansas ($1.98), Missouri ($1.98), Texas ($2.00) and Arkansas ($2.00).
  • Averages are down nationwide year-over-year, with the largest yearly savings experienced by drivers on the West Coast: California (-91 cents), Nevada (-73 cents), Alaska (-69 cents), Oregon ( -60 cents), Hawaii (-59 cents) and Arizona (-55 cents).
  • Gas prices are up by more than a quarter per gallon month-over-month in Utah (+29 cents), Delaware (+27 cents), Idaho (+26 cents) and West Virginia (+26 cents).
  • The most common price at the pump is $2.099 per gallon.

West Coast
Drivers on the West Coast continue to pay the nation’s highest averages for retail gasoline, and the nation’s top five most expensive markets are all in this region: California ($2. 80), Hawaii ($2. 64), Washington ($2.49), Nevada ($2.48) and Alaska ($2.46). Gasoline stocks grew on the week and remain well above levels commonplace for this time of year, which should keep prices relatively steady as more drivers take to the roads.

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ExxonMobil’s Torrance Calif. refinery delayed the restart of its fluid catalytic cracker and associated gasoline production units due to unexpected operational delays. Gasoline production is not expected to be at full capacity until later in the month, and the return of this refinery is expected to help offset some of the growing demand in the state and region.

Gulf Coast
On the other end of the spectrum, the Gulf Coast remains the nation’s least expensive markets for gas. Every state in the region is represented in the nation’s top ten least expensive markets for retail gasoline: Texas ($2.00), Arkansas ($2.00), Louisiana ($2.01), Mississippi ($2.01), Alabama ($2.04) and New Mexico ($2.04). Pump prices are typically lower in this region of the country, based on its proximity to a large number of refineries.

According to the latest data from the U.S. EIA, high inventories and production characterize the Gulf Coast, and the refinery utilization rate also grew in the region on the week. The supply of gasoline is reported to be ample, and prices within the region should remain on the lower end of the spectrum as we enter the busy summer driving season, provided there are no unexpected disruptions.

Midwest
As has often been the case in recent years, volatility continues to characterize pump prices in the Midwest. Retail averages are down double digits on the week in Indiana (-13 cents), Ohio (-13 cents), and Michigan (-10 cents). This is in contrast to last week’s report, where each of the abovementioned states were posting double digit increases week-over-week. Gasoline inventories in the Midwest fell for the 12th consecutive week due to growing demand and heavy refinery maintenance, but remain above year-over-year levels.

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The region is also home to some of the nation’s lowest pump prices: Oklahoma ($1.95), Kansas ($1.98) and Missouri ($1.98), which are the only three states with averages below $2 per gallon.

The wildfires in the Canadian Oil Sands may potentially impact drivers in the Midwest because crude oil from this region is sold and refined in the Midwest. Disruptions in this oil supply could result in higher costs for refiners, which could lead to higher gas prices. Prices in the region are likely to remain volatile in the near term, and will continue to reflect the ability of supply to keep pace with demand.

East Coast
Gasoline inventories are up on the East Coast and the return of a few refineries to production in the region are also contributing to the overall expected growth in U.S. refining production. The regional market is well supplied with product, though three of the top ten most expensive markets are located in the region: Pennsylvania ($2.40), Washington, D.C. ($2.39) and New York ($2.38). On the whole, gas prices in the region have been steady, moving by +/-2 cents per gallon over the past week.

Oil Market Dynamics
The possibility of disrupted supply from the Canadian Oil Sands influenced the global price of crude oil over the past week; however, expectations of reduced supply were largely overshadowed by news of increased production out of Iran and other OPEC and non-OPEC nations. Iran reportedly reached pre-sanction production levels, and as production countries continue to fight for market share, the global oil market is likely to remain oversupplied.

Global oil prices rallied over the weekend due to news that the longtime Saudi Arabian oil minister would be replaced. This sentiment was short-lived as reports quickly surfaced that the world’s largest exporter would maintain its current course and attempt to defend its market share by sustaining production levels. Oversupply is likely to continue to characterize the global oil market and attention will remain focused on output from non-OPEC countries and any other factors that may help bring supply and demand into balance.

At the close of Friday’s formal trading session on the NYMEX, WTI was up 34 cents and settled at $44.66 per barrel.

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.

Gas Prices Climb to Six-Month High

May 2nd, 2016 by AAA

Michael Green Contact Tile(WASHINGTON, May 2, 2016) Gas prices are at their highest levels in more than six months, and the national average has remained above $2 per gallon for 40 consecutive days. Today’s average price of $2. 22 represents an increase of eight cents per gallon on the week, and prices are up 16 cents per gallon on the month. Ample gasoline supplies and relatively lower crude oil costs are helping to sustain year-over-year savings, with today’s price discounted by 39 cents per gallon versus a year ago.

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Gasoline demand continues to break seasonal records as low prices motivate people to drive more. Additionally, crude oil costs are also increasing and recently reached new 2016 highs. Increased demand and more expensive oil costs have helped to push gas prices higher in many parts of the country over the past few weeks, and prices may move even higher leading into the busy summer driving season.

The average price at the pump for the month of April was $2.10 per gallon, which is the lowest average for this month since 2009. Only 20 percent of U.S. stations are still selling gas for less than $2 per gallon and pump prices are moving due to growth in fuel demand, which is up 5.6 percent versus a year ago, according to the latest data from the U.S. EIA. Gas prices have increased by 52 cents per gallon after hitting a 2016 low in mid-February.

Four states are posting averages below $2 per gallon, which is nine fewer states than last week’s report. Retail averages have historically fluctuated during this time of year, and although the overall price at the pump is beginning to trend higher, gas prices during this year’s summer driving should remain noticeably discounted in comparison to previous years.

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The national average price of diesel has been cheaper than gasoline for the past five days, and diesel may remain less expensive than gasoline for the remainder of the summer. In recent years it has been rare for diesel to be cheaper than gasoline. The last time the national average price of diesel was less than gasoline for a significant period was in the summer of 2009, when the average was cheaper for 48 days in a row. It is possible that diesel will remain cheaper than gasoline for the next 3-4 months due to abundant supplies and seasonal factors impacting both gasoline and diesel.

Quick Stats

  • The nation’s top five most expensive markets are: California ($2. 80), Hawaii ($2. 58), Nevada ($2.48), Alaska ($2.42) and Washington ($2.42).
  • The nation’s top five least expensive markets are: Oklahoma ($1.96), Texas ($1.98), Missouri ($1.99), Kansas ($1.99) and Mississippi ($2.00).
  • The most common price at the pump is $1.999 per gallon.

Consumer Attitudes

The lower price environment for gas prices has not only led to drivers taking to the roads at record levels, but is also shifting attitudes about various price points. Attitudes towards gas prices have changed significantly over the past few years, according to a new survey by AAA:

  • Half of U.S. drivers now believe gas is “too high” at $2.50 per gallon. This figure has dropped significantly in relationship to the price of gas. As recently as 2014, half of Americans believed gas was “too high” at $3.30 per gallon, while last year half of Americans believed it was “too high” at $3 per gallon. Only nine percent of U.S. stations are selling gas for more than $2.50 per gallon today.
  • More than 35 percent of Americans believe that gas is “too high” based on today’s average price, even though gas prices are at the lowest levels since 2009. The vast majority of Americans also do not believe that gas is “cheap” today.

West Coast

Gas prices on the West Coast remain some of the highest in the nation, led by California ($2.80) and Hawaii ($2.58), which are the only two states with averages above $2.50 per gallon. Regional neighbors Nevada ($2.48), Alaska ($2.42) and Washington ($2.42) join in the rankings as the top five most expensive markets. Six out of ten of the nation’s top 10 most expensive retail markets are located in this region.

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Refinery operations in California are described as relatively healthy compared to a year ago, and gasoline production on the West Coast is reportedly at a seven-month high. The market appears to be well supplied with product, and barring any unexpected disruptions in supply, gas prices in the region should hold relatively steady. Drivers in the region have benefitted from a surplus in gasoline supply versus one year ago, which has contributed to noticeable savings at the pump year-over-year. A total of five states nationwide are posting yearly discounts of more than 50 cents per gallon, all located within this region: California (-88 cents), Alaska (-68 cents), Nevada (-66 cents), Hawaii (-61 cents), Oregon (-59 cents).

ExxonMobil’s Torrance Calif. refinery is still in the process of restarting gasoline production, and is expected to be fully online in May. This refinery produces approximately 10 percent of all gasoline sold in California and when it went offline in February of 2015 due to an explosion, prices to spiked in the region.

Midwest

Prices in the Midwest continue to swing significantly due to movements in supply and demand. Retail averages are up double digits on the week in the Midwestern states of Michigan (+13 cents), Ohio (+13 cents), Indiana (+11 cents) and Illinois (+10 cents). Some of the largest jumps in gas prices month-over-month are also seen in the region, and averages are up by more than a quarter per gallon in Illinois (+29 cents), Indiana (+28 cents), Ohio (+28 cents) on the month.

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Despite this trend of weekly and monthly increases, this region is also home to some of nation’s least expensive markets for retail gasoline: Oklahoma ($1.96), Missouri ($1.99) and Kansas ($1.99).  Crude oil supply is reportedly building in the region and refineries are continuing to return to production following the spring maintenance season. The refinery utilization rate in the region is increasing, which should help stabilize the price at the pump, barring any unexpected disruptions in supply.

Gulf Coast

The Gulf Coast region includes some of nation’s least expensive markets for retail gasoline: Texas ($1.98), Louisiana ($2.00), Arkansas ($2.00) and New Mexico ($2.03). Ample supply is a contributing factor to the comparatively lower prices in the region, and the latest data from the U.S. EIA reflects an increase in gasoline inventories. Approximately 50 percent of the total U.S. refining capacity is located along the Gulf coast, which generally helps prices in the region to remain relatively low. However, a few refineries in the region are reporting challenges and supply could begin to tighten in the near term, which could support higher prices in the near term.

Oil Market Dynamics

Oil is the largest cost associated with producing gasoline, and every $1 change can increase gas prices by as much as 2.4 cents per gallon. The cost of crude has increased by approximately $10 per barrel since the beginning of April, attributed to interruptions in global supply and the expectation that demand will rise in the coming months.

Despite falling U.S. rig counts and weekly decreases in U.S. production, the domestic crude oil market remains well supplied. The latest data from the U.S. EIA shows an increase in both crude oil inventories and gasoline inventories, which should help offset growing demand and keep pump prices relatively low.

A weakening U.S. dollar and expectations that the Fed will increase interest rates is supporting speculations that the global oil market will begin to come into balance sooner than expected. Geopolitical factors are also likely to influence the market in the near team, and attention remains focused on both OPEC and non-OPEC production based on the current glut in global supply.

WTI reached its highest price for 2016 the last week in April as talks of a weakening U.S. dollar, increased demand and falling output surfaced. However, this boost in price was short lived and reports of increased production out of OPEC pushed prices lower to close out the week.  At the close of Friday’s formal trading session on the NYMEX, WTI was down 11 cents and settled at $45.92 per barrel.

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.

Michael Green Contact Tile(WASHINGTON, April 25, 2016) Relatively cheap gas prices are boosting driving demand, and 2016 remains poised to be a record year for both gasoline consumption and annual miles traveled. Although pump prices moved higher by two cents per gallon on the week and drivers are paying a dime more per gallon to refuel their vehicles on the month, today’s average price of $2.14 per gallon is the lowest for this calendar date since 2009. Consumers continue to save on the year, with today’s average discounted by 39 cents per gallon compared to this same date last year.

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As we enter the summer driving season all eyes will focus on whether refiners can keep pace with the expected increase in demand.  Gasoline demand continues to surpass 2015 year-to-date levels, and as more drivers take to the roads, refiners will work to increase gasoline production to levels that meet this higher demand. This likely means another higher-than-normal year of refinery runs, which can put additional strain on refinery equipment and overall operations. In preparation for the busy summer driving season, a number of refineries are reportedly ramping up production and keeping a close eye on their utilization rates.  Barring any unforeseen challenges in supply and refinery production, drivers are expected to pay some of the lowest prices for the summer months in more than a decade.

California ($2.77) and Hawaii ($2.58) lead the market and are the only two states with averages above $2.50 per gallon. Gasoline production in the region reportedly fell week-over-week, which may be a contributing factor to prices in the region remaining some of the highest in the nation. Nevada ($2.45), Washington ($2.34) and Pennsylvania ($2.32) join in the rankings as the nation’s top five most expensive markets for retail gasoline. On the other end of the spectrum, consumers in the Gulf Coast states of Texas ($1.90) and Mississippi ($1.91) are paying the nation’s lowest prices at the pump.

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Prices have moved higher on the week in the majority of states (44) and Washington, D.C. Drivers in 10 states are paying a nickel or more per gallon week-over-week, with the largest price increases experienced by consumers in Indiana (+9 cents), West Virginia (+9 cents) and Utah (+8 cents). Averages are down in six states over this same period, and motorists in Minnesota (-4 cents), and Hawaii (-3 cents) are saving the most at the pump versus one week ago.

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Drivers in the vast majority of states (49) are paying more to refuel their vehicles compared to a month ago. Retail averages are up a nickel or more in 39 states and Washington, D.C. on the month and consumers in 23 states and Washington, D.C. have seen prices jump double digits over this same period. The largest monthly increases in prices have been experienced by drivers in Utah (+32 cents) Indiana (+23 cents) and Ohio (+22 cents). Hawaii is the only state outside of this trend of monthly increases with its average down by fractions of a penny.

Gas prices are discounted in every state and Washington, D.C. by at least a quarter per gallon versus one year ago, largely due to lower crude oil prices and minimal disruptions in supply.  The most dramatic yearly savings are seen in the Western states of Alaska (-72 cents), Oregon (-56 cents), California (-55 cents) and Hawaii (-51 cents), which typically lead the market with the nation’s highest averages at the pump.

The global oil market is at a crossroads and it is a mystery as to where oil prices might head going forward. Market fundamentals continue to point to extreme oversupply, though expectations of global demand growth or production cuts by major oil producers could influence crude oil prices higher.  Geopolitical factors, such as the recent oil strike in Kuwait helped push crude oil to 2016 highs late last week, also will continue to influence prices in unexpected ways.

According to the U.S. EIA, domestic production declined for yet another week, and the U.S. oil rig count also fell for the fifth consecutive week. However, it is important to note that output is falling at a slow pace and is likely to bounce back to previous levels should prices rebound.  As a result of this dynamic, the global oil market is expected to remain well supplied, keeping the price at the pump relatively low compared to previous years.

At the close of Friday’s formal trading session on the NYMEX, WTI settled at a 2016 high and was up 55 cents at $43.73 per barrel.

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.

Michael Green Contact Tile(WASHINGTON) Record-high fuel demand, declining refinery production and rising oil costs have pushed the national average price of gas to $2.11 per gallon. Average gas prices have increased seven cents per gallon on the week and prices are up 45 out of the past 55 days for a total of 41 cents per gallon. Despite the recent increases, pump prices are down 33 cents per gallon compared to this same date last year.

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Prices may move higher during the second quarter of the year in select regional markets due to intermittent supply challenges and increased demand for gasoline. The relatively lower price for gasoline is also reportedly prompting more drivers to take to the roads, and the U.S. EIA’s weekly estimates on gasoline consumption are approaching levels typical for the summer months. This increase in driving may put pressure on local gasoline markets and cause prices to move higher if demand outpaces the available supply of gasoline. However, consumers remain poised to benefit from substantial comparative savings as we enter the busy summer driving season, and it is likely that most drivers will pay the cheapest summertime prices in 12 years.

Drivers on the West Coast are paying some of the nation’s highest averages at the pump, and prices have risen as refineries work to meet growing demand. California ($2.78) and Hawaii ($2.60) lead the market and remain the only two states posting retail averages above $2.50. Nevada ($2.45), Washington ($2.32) and Alaska ($2.31) round out the rankings as the nation’s top five most expensive markets for gasoline. The Gulf Coast states of Mississippi ($1.89) and Louisiana ($1.89) are nation’s least expensive markets, and prices in a total of 13 states remain below the $2 per gallon benchmark.

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Consumers in the vast majority of states (49) are paying more at the pump versus one week ago. Pump prices are up by a nickel per gallon or more in 38 states and Washington, D.C. over this period, with the largest jumps occurring in the Midwestern states of Minnesota (+14 cents), Kentucky (+14 cents), Illinois (+14 cents) and Michigan (+12 cents). The latest data from the region points to refinery production dropping to a 2016 low, largely attributed to a number of refineries running at reduced rates due to ongoing and unplanned maintenance. Additionally, the region’s crude oil supply was temporarily reduced as a result of the Keystone pipeline being shut down following a recent leak. In the near term, gas prices could fluctuate in the region as the market seeks balance. Hawaii is the only state to buck this trend of weekly increase, and prices are down in the state by fractions of a penny week-over-week.

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Retail averages are up nationwide month-over-month, and gas prices in 47 states and Washington, D.C. are up by more than a nickel per gallon over this period. Drivers in more than half of states (32) are paying double digit increases at the pump, with the largest jumps in price experienced by drivers in: Utah (+30 cents), Arizona (+26 cents), New Jersey (+26 cents), Connecticut (+26 cents) and Massachusetts (+25 cents).

Year-over-year discounts in the price of retail gasoline persist, and drivers in every state and Washington, D.C. are benefiting from comparative discounts at the pump. Averages are down by a quarter or more per gallon in 48 states and Washington, D.C., and drivers in Alaska (-68 cents), Oregon (-50 cents), Hawaii (-46 cents) and Utah (-46 cents) are saving the most at the pump versus this same date last year.

As largely expected, major oil exporters failed to reach an agreement during the much-anticipated meeting between OPEC and non-OPEC countries over the weekend. Saudi Arabia maintained its previous position not to participate in a production freeze unless all other countries agreed to do the same, and Iran held fast to its word to opt-out of the plan. Attention now turns to other factors that may help bring the market more into balance, including reports and projections of global crude oil demand and any news from the U.S. that may also potentially impact prices.

U.S. domestic production fell to a level unseen since September 2014, and the U.S. oil rig count is at its lowest level since November 2009. Speculation is beginning to surface whether U.S. production may soon decline more significantly, and what if anything this may mean for the global oil market’s current oversupply.

At the close of Friday’s formal trading session on the NYMEX, WTI was down $1.14 and settled at $40.36 per barrel. Oil prices have dropped even further today due to the news out of Doha, and this could provide some relief for gas prices.

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.

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