Posts Tagged ‘Oil’

Average Gas Prices Holding Steady to Begin Spring

March 20th, 2017 by Jessica Souto

Tamra Johnson

Pump prices remain relatively stable, with today’s national average price for regular unleaded gasoline holding at $2.29 per gallon. Today’s average price is down by fractions of a penny compared to one week ago, but has moved one cent higher compared to last month. Drivers are paying 31 cents more per gallon at the pump compared to this same date last year.

Quick Stats

  • The nation’s top ten least expensive markets are: South Carolina ($2.01), Tennessee ($2.04), Alabama ($2.05), Mississippi ($2.06), Arkansas ($2.08), Texas ($2.09), Virginia ($2.09), Oklahoma ($2.09), Louisiana ($2.10) and Missouri ($2.10).
  • The nation’s markets that have seen the largest yearly increases include: Washington (+61 cents), Utah (+60 cents), Alaska (+58 cents), Idaho (+56 cents), New Jersey (+55 cents), Oregon (+54 cents), Hawaii (+51 cents), Montana (+44 cents), Pennsylvania (+43 cents) and Connecticut (+40 cents).

West Coast

Gas prices on the West Coast remain the highest in the country with six states in the region topping the list of most expensive U.S. markets: Hawaii ($3.07), California ($2.99), Washington ($2.85), Alaska ($2.80), Oregon ($2.68) and Nevada ($2.66). The latest US Energy Information Administration (EIA) report shows that gasoline inventories dropped to 29.027 million bbl for the week ending March 10, while regional refinery production increased 17 percent. OPIS reports that production increases are likely the result of the completion of a major 45-day turnaround at Phillips 66’s 107,500- b/d refinery in Ferndale, Washington.

Rockies

Gas prices remain stable over the past week with averages in most states moving by just fractions of a penny. The region is home to some of the largest yearly state increases: Utah (+60 cents), Idaho (+56 cents) and Montana (+44 cents). OPIS reports that recent increases near the Utah area largely resulted from a shutdown on the Wahsatch Pipeline, which negatively impacted refinery production in the region. Plains All American Pipeline completed repairs on the pipeline March 10.

Great Lakes and Central States

Volatility continues to characterize pump prices in the Great Lakes region. Some states reflected double-digit declines at the start of the month, only to see gains over the past seven days: Ohio (+6 cents), Indiana (+6 cents) and Michigan (+2 cents). Drivers in other states saw modest declines on the week: Iowa (-3 cents), Minnesota (-3 cents), Wisconsin (-3 cents) and Kansas (-2 cents).

OPIS reports that a unit fire has slowed production at LyondellBasell’s 302,300-b/d refinery in Houston, Texas. The refiner ships most of its gasoline to the Midwest through the Magellan Pipeline. Wolverine Pipe Line Company reports that the new Detroit Metro Access Pipeline (DMAP) is now in service and is transporting refined oil products from Chicago to Detroit.

Mid-Atlantic and Northeast

The East Coast saw a decline in gasoline supplies last week as refiners prepare to switch from winter-blend to summer-blend gasoline. Despite the decline in supply, prices in the regions remain stable on the week with Pennsylvania ($2.49), Washington, D.C. ($2.46), New York ($2.43) and Connecticut ($2.39) all landing on the list of top 15 most expensive markets in the country.

 

South and Southeast

Markets in the South and Southeast continue to post some of the lowest prices for retail gasoline in the nation, including South Carolina ($2.02), Tennessee ($2.04), Alabama ($2.05), Mississippi ($2.06), Arkansas ($2.08), Texas ($2.09), Oklahoma ($2.10) and Louisiana ($2.10). The latest EIA report shows that Gulf Coast crude oil inventories dropped 2.4 million bbl for the week ending March 10. The declines are the result of a nearly 500,000-b/d drop in regional imports last week. As mentioned in the Great Lakes/Central States summary, OPIS reports that a unit fire at LyondellBasell’s 302,300-b/d Houston, Texas, refinery resulted in production cuts. The refiner ships most of its product to the Midwest via the Magellan Pipeline.

Oil Market Dynamics

While prices have been flat in recent weeks, a long-term bearish sentiment continues to underscore the global oil market as speculation about the balance between OPEC cuts and U.S. production drives the market. Last Friday, OPEC’s Joint Technical Committee met to review compliance and participant’s level of adherence to the production cut agreement. Following the JTC meeting, Russia agreed to drop total production by 300,000 barrels per day by the end of April and pledged to maintain that level until the deal expires at the end of June. Saudi Arabia followed the compliance meeting with news that it may consider working with partner countries to continue the cuts beyond the June agreement deadline.

Even with OPEC’s compliance in the 90 percent range, U.S. production continues to cut into any rebalancing efforts by OPEC and non-OPEC countries. On Friday, oil service company, Baker Hughes, reported that the U.S. rig count increased again last week when producers added 14 drilling rigs, bringing the total rig count to 631 in the United States. Traders will continue to watch whether OPEC and non-OPEC members make moves to further cut production in an attempt to balance the global oil supply. At the close of Friday’s formal trading session on the NYMEX, WTI was up three cents to settle at $48.78 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 Make Slow 10 Day Decline

March 13th, 2017 by Jessica Souto

Tamra Johnson

After remaining relatively flat, the national average price for regular unleaded gasoline has now fallen for 10 straight days to today’s average of $2.30 per gallon. Today’s national average is one cent less than one week ago and two cents more than one month ago. Compared to this same date last year, consumers are paying 37 cents more per gallon at the pump.

Gas prices may continue to drop in the near future due to declining crude oil prices and a well-supplied market, but will begin to creep up again over the next month due to seasonal refinery maintenance and the May 1 required switchover for producing summer-blend gasoline. This prediction comes with the necessary caveat that an unexpected market-moving event, such as unplanned domestic refinery maintenance or further production cuts from OPEC and non-OPEC countries, could further impact prices and supply.

Quick Stats

  • The nation’s top five least expensive markets are: South Carolina ($2.03), Tennessee ($2.05), Alabama ($2.05), Mississippi ($2.07) and Arkansas ($2.09).
  • The nation’s most dramatic weekly change in prices include: Indiana (-11 cents), Ohio (-8 cents), Michigan (-8 cents), Kentucky (-8 cents) and Oregon (+8 cents).

West Coast

Most drivers in the West Coast saw increases at the pump this week: Oregon (+8 cents), Washington (+5 cents), Nevada (+3 cents), Alaska (+2 cents) and California (+2 cents). Maintenance continues at Phillips 66’s 107,500-b/d refinery in Ferndale, Washington, while most other regional refiners have already made the switch to summer-blend gasoline. The impact of refinery maintenance was evident in the latest Energy Information Administration (EIA) report, which shows West Coast refinery utilization dropping 0.4 percent and refinery crude inputs dropping 44,000 b/d to a total of 2.162 million b/d. The region continues to be the priciest in the nation with Hawaii ($3.07), California ($3.01), Washington ($2.84), Alaska ($2.79), Oregon ($2.68) and Nevada ($2.64) all topping the list of most expensive markets.

Rockies

Gas prices in the Rocky Mountain states are a mixed bag of increases and decreases on the week, with Utah (+7 cents) landing on the top five list of largest weekly increases. Plains All American Pipeline completed repairs on the Wahsatch Pipeline late Friday evening. The pipeline, which receives crude oil from locations near Evanston, Wyoming, and makes deliveries to refineries in Salt Lake City, shut down February 10, due to indications of soil movement. OPIS reports that many local refiners cut production rates and relied on crude delivery by trucks while the pipeline was offline.

Great Lakes and Central States

The latest EIA report shows a 69,000 b/d drop in gasoline production by regional refiners and blenders to 2.364 million b/d for the week ending on March 3. Local refinery issues are the likely cause of production declines. Phillips 66’s 330,000-b/d Wood River refinery is currently undergoing planned and unplanned maintenance. CITGO’s 185,200-b/d refinery in Lemont, Illinois, lost a compressor at a processing unit and ExxonMobil Inc.’s 260,000-b/d refinery in Joliet, Illinois, is undergoing unplanned maintenance due to undisclosed equipment failure.

Despite recent refinery issues, some drivers in the regions are seeing significant declines at the pump: Indiana (-11 cents), Ohio (-8 cents), Michigan (-8 cents), Kentucky (-8 cents) and Illinois (-5 cents).

Northeast and Mid-Atlantic

Prices in the Mid-Atlantic and Northeast regions have remained relatively flat over the past week, moving by +/- 2 cents or less in most parts of the regions. According to the latest EIA report, regional gasoline inventories dropped by 3.8 million bbl. Pennsylvania ($2.49), Washington D.C. ($2.47) and New York ($2.43), remain on the list of most expensive markets in the country while Tennessee ($2.05) and Virginia ($2.10), both land on the top 10 list of least expensive markets.

South and Southeast

The Southern region continues to remain home to some of the nation’s lowest average prices for retail gasoline with six of the nation’s top 10 least expensive markets: South Carolina ($2.03), Alabama ($2.05), Mississippi ($2.07), Arkansas ($2.09), Texas ($2.10) and Louisiana ($2.10). The latest EIA report shows a drop in regional gasoline inventories as refiners prepare to make the switch to summer-blend gasoline.

Oil Market Dynamics

Crude prices declined again today as the global oil market remains oversupplied, and relatively high U.S. production levels continue to support bearish market sentiment. The possibility of continued production compliance by OPEC is likely to keep the market relatively fickle in the near term. Traders will continue to keep a close eye on OPEC compliance and U.S. supply and production. At the close of Friday’s formal trading session on the NYMEX, WTI was down 79 cents to settle at $48.49 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.

Tamra Johnson

Oil prices slipped fractions of a penny over the weekend, reaching today’s national average price for regular unleaded gasoline of $2.31 per gallon. Today’s price is still two cents more than one week ago, four cents more compared to one month ago and 50 cents more per gallon year-over-year. Retail prices continue to fluctuate but have remained between $2.28-2.32 for more than a month as reports of increased U.S. production continues to counter OPEC rebalancing efforts.

Quick Stats

  • The nation’s top five most expensive markets are: Hawaii ($3.08), California ($2.99), Washington ($2.79), Alaska ($2.77) and Nevada ($2.61).
  • The nation’s top least expensive markets are: South Carolina ($2.05), Tennessee ($2.07), Alabama ($2.07), Mississippi ($2.09) and Arkansas ($2.11).
  • The nation’s most dramatic weekly price increases include: Michigan (+12 cents), Indiana (+11 cents), Ohio (+9 cents), Illinois (+7 cents) and Kentucky (+6 cents).

West Coast

Prices on the West Coast remain the most expensive in the nation, with six states landing on the list of most expensive markets: Hawaii ($3.08), California ($2.99), Washington ($2.79), Alaska ($2.77), Nevada ($2.61) and Oregon ($2.60). Prices in most parts of the region have followed the national average trending higher, with Oregon (+5 cents), California (+5 cents), Nevada (+4 cents) and Washington (+3 cents) all making the list of top ten largest increases. Refiners in California have already made the switch to summer-blend gasoline and OPIS reports that many refineries continue to run at reduced rates due to planned and unplanned maintenance. Refiners in Washington are also undergoing planned maintenance with Phillips 66 conducting turnaround at its 107,500-b/d refinery in Ferndale, Washington, and BP undergoing planned maintenance at its 236,000-b/d Cherry Point refinery in Ferndale, Washington. The latest EIA report shows that West Coast refineries cut processing by 25,000 b/d to a total of 2.206 million b/d of crude oil for the week ending Feb. 24.

Rockies

Issues on the Wahsatch Pipeline are creating tight supply and price increases across most of the region. Plains All American Pipeline released a statement Friday saying that the Salt Lake City, Utah, crude pipeline is expected to reopen this weekend, after shutting down February 10 due to indications of soil movement. The Wahsatch Pipeline receives crude oil from locations near Evanston, Wyoming, and makes deliveries to refineries in Salt Lake City. OPIS reports that Tesoro and HollyFrontier have cut output at their Salt Lake City refineries due to low supplies.

Great Lakes and Central States

These regions saw some of the most dramatic price increases this week: Michigan (+12 cents), Indiana (+11 cents), Ohio (+9 cents), Illinois (+7 cents) and Kentucky (+6 cents). Price increases can be attributed to issues at some regional refineries. Last week, Phillips 66 reported problems with an oil-processing unit at its 330,000-b/d Wood River refinery in Roxana, Illinois. OPIS reports that CITGO experienced power outages at its 185,200-b/d refinery in Lemont, Illinois, last week due to severe weather, while ExxonMobil also experienced weather related issues at its 260,000-b/d Joliet refinery in Channahon, Illinois. 

 

Northeast and Mid-Atlantic

The Northeast and Mid-Atlantic are some of the only regions to see moderate declines on the week. Maine, New Jersey, Pennsylvania, New York, New Hampshire, Massachusetts and Connecticut all saw pump prices move down by a penny or less. Gasoline inventories remain high in the regions. OPIS reports that the healthy supply should keep prices relatively stable as the market prepares for the transition to summer-blend gasoline. Despite minor declines on the week, Pennsylvania ($2.50), Washington D.C. ($2.48) and New York ($2.45) remain some of the most expensive markets in the country.

South and Southeast

States in the south and southeast continue to top the list for lowest prices, with eight out of ten of the nation’s cheapest retail markets located in the regions: South Carolina ($2.05), Tennessee ($2.07), Alabama ($2.07), Mississippi ($2.09), Arkansas ($2.11), Texas ($2.11), Louisiana ($2.12) and Oklahoma ($2.12). The latest EIA report shows that regional gasoline stocks dropped 100,000 bbl to 81.6 million bbl. OPIS reports that Valero experienced some issues at its refinery in Corpus Christi, Texas, last week when a compressor tripped offline due to an instrumentation failure.

Oil Market Dynamics

Today, markets opened posting crude oil losses pressured lower by an increasing U.S. rig count and questions about Russia’s ability to comply with OPEC cuts. Oil production in the U.S. continues to rise, and according to oil services company Baker Hughes, U.S. drillers added seven oil rigs last week, bringing the total rig count up to 609, the most since October 2015.

Globally, the Russian energy ministry released oil production data showing that their oil production has remained unchanged as compared to last month. This information has unsettled traders and many speculate whether or not Russia will thwart efforts by OPEC to rebalance global oil supply. Traders will continue to watch how the market reacts to increased U.S. oil production and look for signs as to whether or not Russia implements production cuts. At the closing of Friday’s formal trading session on the NYMEX, WTI was up 72 cents to settle at $53.33 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.

Average Gas Price Remains Flat to Close February

February 27th, 2017 by Jessica Souto

Tamra Johnson

National gas prices have remained flat, fluctuating by only a couple of pennies for the last 27 days. Today’s average price for regular unleaded gasoline is $2.29 per gallon, which is the same price as one week ago, same price as compared to one month ago and 55 cents more than the same date last year. In mid-March, prices will likely rise as more refiners begin to switch from winter-blend to summer-blend gasoline and driver demand increases.

Quick Stats

  • The nation’s top five least expensive markets are: South Carolina ($2.03), Alabama ($2.06), Tennessee ($2.07), Mississippi ($2.08) and Texas ($2.08).
  • The nation’s top five most expensive markets include: Hawaii ($3.10), California ($2.94), Washington ($2.75), Alaska ($2.74) and Nevada ($2.57).
  • The nation’s top five markets with the most dramatic weekly changes in prices include: Indiana (-10 cents), Utah (+7 cents), Ohio (+7 cents), Michigan (+5 cents) and Idaho (+5 cents).

West Coast

Hawaii ($3.10) remains the nation’s most expensive market for retail gasoline and drivers in the state are paying 16 cents more per gallon than second-place California ($2.94). Regional neighbors, Washington ($2.75), Alaska ($2.74), Nevada ($2.57) and Oregon ($2.56) join in the rankings as the top six most expensive markets for gas. Tight supply in the region has pressured prices higher in most states. The latest report from the U.S. Energy Information Administration (EIA) shows that West Coast gasoline inventories dropped 600,000 bbl to 30.5 million bbl. Last week, OPIS reports that PBF Energy’s Torrance refinery experienced a fire while Tesoro also reported problems at its Wilmington refinery, which has been undergoing planned maintenance since January.

Rockies

Prices in the region remain stable on the week with the exception of Utah (+7 cents) and Idaho (+5 cents) which both saw sizable increases. Plains All American Pipeline reports that the Wahsatch Pipeline — which receives crude oil from locations near Evanston, Wyoming, and delivers to refineries in Salt Lake City, Utah — will remain down until they address “indications of soil movement.” Due to the pipeline issues, OPIS reports that many refiners in the area have been relying on truck deliveries for supply. HollyFrontier, Silver Eagle and Big West Oil have all cut production rates at their Salt Lake City refineries. Tesoro reports that they have resumed operations at its 63,000-b/d Salt Lake City refinery after temporarily shutting down last week due to supply shortages.

Great Lakes and Central States

Indiana (-10 cents), Ohio (+7 cents), Michigan (+5 cents) and Kentucky (+3 cents) are posting the nation’s largest weekly changes. The latest EIA report shows that regional gasoline stocks increased 358,000 bbl, to 60.087 million bbl, while regional refinery utilization dropped for the third consecutive week. HollyFrontier’s 135,000-b/d refinery in El Dorado, Kansas, is currently undergoing planned turnaround work. Region pump prices will likely remain volatile in the coming weeks as refiners begin to make the switch from winter-blend to summer-blend gasoline.

Mid-Atlantic and Northeast

Pump prices in the Mid-Atlantic and Northeast regions remain relatively stable, moving +/- 3 cents or less on the week. Pennsylvania ($2.52), Washington D.C. ($2.47) and New York ($2.46), all land on the top 10 list of most expensive markets in the country while Virginia ($2.10) lands on the list of top 10 least expensive markets. The latest EIA report shows that Northeast gasoline inventory dropped to 75.488 million bbl, which is more than 3 million bbl higher than this same period last year.

South and Southeast

The region continues to remain home to the nation’s least expensive markets for retail gasoline: South Carolina ($2.03), Alabama ($2.06), Tennessee ($2.07), Mississippi ($2.08) and Texas ($2.08). The latest EIA report shows that gasoline inventories in the region dropped 1.7 million bbl for the week ending February 17. Last week, OPIS reports that Phillips 66 experienced minor operation issues at its 218,747-b/d Ponca City refinery in Oklahoma and at its 154,000-b/d refinery in Borger, Texas.

Oil Market Dynamics

The market opened Monday morning posting gains following commitments from the United Arab Emirates and Iran to catch up with their promised production cuts. Continued compliance from OPEC countries has kept crude oil trading higher than last year, but rising U.S. production has placed a ceiling on the market leading to flat prices.

U.S. oil production continues to grow steadily as evidenced by the increasing rig count. Friday, oil field service company Baker Hughes reported that the U.S. added five additional rigs bringing to total rig count to 602. Additionally, according to the most recent EIA weekly status report, U.S. crude oil inventories rose to a total of 518.7 million barrels. Traders will continue to watch the impact that increased U.S. production and inventories have on the market going forward. At the close of Friday’s formal trading session on the NYMEX, WTI was down 46 cents to settle at $53.99 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.

Average Gas Prices Remain Steady Despite Low Demand

February 21st, 2017 by Jessica Souto

Tamra Johnson

National gas prices have increased fractions of a penny to reach today’s average price for regular unleaded gasoline, which is $2.28 per gallon. Today’s average is the same as one week ago, five cents less compared to one month ago and 56 cents more than the same date last year. Prices continue to remain flat due to lower driving demand and an oversupplied market as a result of increased U.S. production. As refinery maintenance season begins and driving demand increases, we could expect to see some of the gasoline supply in the U.S. soaked up.

Quick Stats

  • The nation’s top five markets that have seen the largest monthly decreases include West Virginia $2.27 (-11 cents), New Jersey $2.33 (-9 cents), Pennsylvania $2.53 (-9 cents), Illinois $2.29 (-9 cents) and Delaware $2.22 (-9 cents).
  • The nation’s top five most expensive markets are Hawaii $3.12, California $2.90, Washington $2.74, Alaska $2.71 and Oregon $2.54.

West Coast

Gas prices on the West Coast continue to be the highest in the country, with every state in the region landing on the top ten list of most expensive markets: Hawaii ($3.12), California ($2.90), Washington ($2.74), Alaska ($2.71), Oregon ($2.54), and Nevada ($2.53). West Coast refinery turnaround work ramped up this week and as a result, the latest EIA report shows a five percent drop in gasoline production. Regional gasoline inventories remained healthy, however, increasing by 860,000 barrels to 31.125 million barrels, the largest build since early January. On Saturday, PBF Energy’s 155,000-b/d Torrance refinery experienced a fire in an oil processing area. OPIS reports that operations in other parts of the refinery have continued while the impacted area has been shut down.

Rockies

Drivers in the region have seen a mixed bag of modest increases and decreases over the past week. Issues with the Wahsatch Pipeline, which receives crude oil from locations near Evanston, Wyoming and delivers to refineries in Salt Lake City, Utah, has caused supply problems for some refiners in the area. OPIS reports that Plains All American Pipeline shut down the pipeline last week to address “indications of soil movement” and will keep it closed until they are able to ensure safe operations. Because of the shutdown, OPIS reports that HollyFrontier, Chevron, Silver Eagle and Big West Oil have had to cut production rates at their Salt Lake City refineries and instead depend on truck delivery for crude supplies. Tesoro shut down production at its 63,000-b/d Salt Lake City refinery due to the pipeline issues. Despite problems with the line, state averages in the Utah area have only moved fractions of a penny on the week.

Northeast and Mid-Atlantic

Over the past week, retail averages have remained stable in the Mid-Atlantic and Northeastern region, moving by a penny or less in most areas. Pennsylvania ($2.53) and Washington, D.C. ($2.50) are the only places in the regions with an average price at or above $2.50 per gallon and prices overall remain moderate. New Jersey (-9 cents), Pennsylvania (-9 cents), Delaware (-9 cents), Virginia (-9 cents), Maine (-8 cents) and Washington, D.C. (-7 cents) all landed on the top 15 list of largest monthly declines.

According to the latest EIA report, East Coast gasoline stocks increased by 2.5 million bbl to 76.3 million bbl – a record high for the region. OPIS reports that the increases occurred despite lower imports and lower gasoline production over the past week.

Great Lakes and Central States

The Great Lakes and Central States continue to be the most volatile regions in the country for gas prices with four states landing on the top 10 list of largest weekly changes: Indiana (+5 cents), Michigan (-3 cents), Kentucky (-3 cents) and Ohio (-2 cents).

Several refineries in the Great Lakes and Central regions have cut production rates this week due to planned and unplanned maintenance. Phillips 66’s 330,000-b/d Wood River refinery located in Roxana, Illinois reported a problem with an oil processing unit Tuesday, while OPIS also reports that the company’s 218,747-b/d Ponca City refinery in Oklahoma shut down a fluid catalytic cracking (FCC) unit for unplanned maintenance work. This week’s EIA report shows that gasoline inventories in the Midwest declined for the first time in the past six weeks.

South and Southeast

South and Southeastern states continue to dominate the rankings of the nation’s least expensive markets for gas. South Carolina ($2.04), Alabama ($2.06) and Tennessee ($2.06) are the nation’s cheapest markets for retail gasoline. They are followed in the rankings by regional neighbors, Mississippi ($2.08), Texas ($2.08) and Arkansas ($2.10). Spring turnaround season will likely bring price increases at the pump. OPIS reports that Phillips 66 is planning to begin maintenance in the next 10 days at its 154,000-b/d Borger refinery in the Texas Panhandle.

Oil Market Dynamics

Markets opened Tuesday morning reporting gains after OPEC reiterated its commitment to cut production. OPEC’s most recent Monthly Oil Market Report stated that participating countries successfully implemented 90 percent of the agreed production cuts. Last November, OPEC and non-OPEC countries agreed to cut production by 1.8 million barrels per day for six months starting in 2017 and have since hinted at the possibility of extending those cuts further. The impact the OPEC agreement has on the market will depend on the rate at which the participating countries comply with production cuts. At this time U.S. oil production is up and so are crude oil inventories so retail prices have remained fairly steady. This could all change if OPEC maintains its high level of compliance and refinery maintenance season eats into U.S. supply as driving demand increases. Traders will continue to keep a close eye on OPEC compliance and U.S. supply and production. At the close of Friday’s formal trading session on the NYMEX, WTI was up 4 cents to settle at $53.40 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 Increase Slightly on the Week

February 13th, 2017 by Jessica Souto

Tamra Johnson

Gas prices edged up higher fractions of a penny over the weekend to reach today’s average price of $2.28. This is seven cents less per gallon on the month and an increase of 58 cents per gallon compared to this same date last year.

2014-2017_Avg Gas Prices_2-13-17-01

Gas prices have remained relatively steady the past month due to a well-supplied crude oil market. Today the Organization of the Exporting Petroleum Countries (OPEC) released their Monthly Oil Market Report showing that participating countries implemented 90 percent of the agreed upon production cuts, which took effect on January 1, 2017. Despite production cuts by OPEC, the market remains overfed due to increased U.S. drilling and production.

Quick Stats

  • The nation’s top five most expensive markets are: Hawaii ($3.11), California ($2.87), Washington ($2.73), Alaska ($2.73) and Pennsylvania ($2.53).
  • Averages are down in many states, with the largest monthly savings experienced by: Delaware (-18 cents), Ohio (-17 cents), West Virginia (-16 cents), Illinois (-15 cents) and Wisconsin (-13 cents).

Top10 Highest Average Gas Price Template_2-13-17-01

West Coast

Gas prices on the West Coast remain the highest in the nation, with all states in the region landing on the list of top 10 most expensive U.S. markets: Hawaii ($3.11), California ($2.87), Washington ($2.73), Alaska ($2.73), Oregon ($2.52) and Nevada ($2.51). Prices in the region have crept higher due to some refinery maintenance last week. OPIS reports that Chevron shutdown two production units at its 295,000-b/d refinery in El Segundo, California, for unplanned maintenance last Monday, while the company’s 257,200-b/d Richmond, California, refinery was also closed last week due to a reported problem with production equipment. According to the latest Energy Information Administration (EIA) report, West Coast gasoline inventories dropped by 339,000 bbl to 30.305 million bbl. This was the third consecutive week of production declines in the region.

Rockies

Prices in the region have remained relatively stable, only moving by +/-3 cents or less in most states over the past month. Prices tend to be geographically insulated from movement tied to global crude oil prices. Regional prices may increase this spring as seasonal effects like increased demand and the switchover to more expensive-to-produce summer-blend gasoline take effect.

Midwest and Central States

Prices in the Central region remained relatively stable over the past week while parts of the Great Lakes region saw dramatic increases: Indiana (+12 cents), Michigan (+8 cents) and Ohio (+6 cents). Chicago gasoline spot prices jumped last week following reports of a fire at CITGO’s 185,200 b/d refinery in Lemont, Illinois. OPIS also reports unplanned maintenance at Husky Energy’s 170,000 b/d refinery in Lima, Ohio. The latest EIA report shows that Midwest gasoline inventories climbed to 60.251 million bbl last week while gasoline production also increased to 2.435 million b/d.

Top10 Largest Monthly Declines-2-13-17-01 

Northeast and Mid-Atlantic

Drivers in much of the Northeast and Mid-Atlantic regions saw prices decrease over the past week with Washington, D.C. (-3 cents), West Virginia (-3 cents), North Carolina (-2 cents) and Pennsylvania (-2 cents) all topping the list of largest weekly declines. The latest EIA report shows that East Coast gasoline inventories increased by 300,000 bbl to 73.8 million bbl, expanding on last week’s record storage levels. In addition, crude oil imports have more than doubled along the East Coast, moving from 521,000-b/d to a total of 1.049 million-b/d last week.

South and Southeast

Drivers in the South and Southeastern quadrant of the U.S. continue to enjoy some of the lowest prices in the nation. Six states in the region rank in the top-ten lowest prices: South Carolina ($2.03), Alabama ($2.05), Mississippi ($2.07), Texas ($2.09), Oklahoma ($2.11) and Louisiana ($2.12). The latest EIA report shows a national drop in gasoline inventories that was driven by a 2 million bbl decline in the Gulf Coast region.

Oil Market Dynamics

Monday morning crude oil prices slipped slightly despite reports that OPEC members cut 890,000 barrels of oil per day in January. OPEC’s Monthly Oil Market Report stated that participating countries successfully implemented 90 percent of the agreed production cuts they pledged in last year’s historic deal. It also showed that some producers, like Saudi Arabia, cut more than was originally required. In November of last year, OPEC and non-OPEC countries agreed to cut the amount of oil they were producing collectively by 1.8 million barrels per day for six months, starting on January 1.

Any gains this report may have resulted in have been tempered by the continued increase in U.S. drilling and production. According to Baker Hughes, over the past week the U.S. added eight more oil rigs- bringing the total count to 591, which is the highest number since October 2015. Traders will continue to watch for cartel production compliance and any fluctuations in U.S. production. At the close of formal trading on the NYMEX, WTI was up 86 cents, settling at $53.86 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 Stable Despite Record Low Demand

February 6th, 2017 by Jessica Souto

Tamra Johnson

The national average price of regular unleaded gasoline remained relatively stable over the past week, settling at today’s price of $2.27 per gallon. Although today’s average remains flat compared to one week ago, drivers are paying ten cents less per gallon month-over-month, and 52 cents more per gallon year-over-year. Pump prices have been pressured higher overall due to cuts in oil production globally, but increased U.S. production and low demand has led to a leveling out of prices over the last couple of weeks. The U.S. Energy Information Administration’s (EIA) latest weekly estimates of U.S. gasoline demand show that January 2017 figures are down 6 percent from January 2016 and are at their lowest standing for the first month of the year since 2012.

2014-2017_Avg Gas Prices_2-6-17-01

Quick Stats

  • The nation’s top five most expense markets are: Hawaii (3.11), California ($2.83), Washington ($2.73), Alaska ($2.72) and the District of Colombia ($2.55).
  • The nation’s top five least expensive markets are: South Carolina ($2.03), Alabama ($2.06), Tennessee ($2.06), Ohio ($2.07) and Mississippi ($2.07).
  • The top five markets with the most dramatic year-over-year increases in gas prices include: Minnesota (+71 cents), Michigan (+68 cents), New Jersey (+67 cents), Illinois (+67 cents) and Kansas (+66 cents).

Top10 Largest Yearly Increases Gas Prices 2-6-17-01

West Coast

Gas prices on the West Coast remain the highest in the country with six states in the region topping the list of most expensive U.S. markets: Hawaii ($3.11), California ($2.83), Washington ($2.73), Alaska ($2.72), Oregon ($2.52), and Nevada ($2.49). Prices in some parts of the region have crept higher due to planned and unplanned refinery maintenance and tight supply in Northern California.

According to the latest EIA report, West Coast refinery utilization rates dropped 4.2 percent – a five week low. OPIS reports that these drops come as planned maintenance will likely began at Tesoro’s 107,000-b/d Wilmington plant, as well as at Valero’s 149,000-b/d Benicia refinery. Phillips 66 is also planning to begin seasonal turnaround work this week at its refinery in Ferndale, Washington. The work is expected to last at least 45 days.

Rockies

Gas prices in the Rockies region have remained relatively stable over the past week with averages in most states fluctuating by two cents per gallon or less. A recent refinery project update from Phillips 66 shows that they plan to increase Canadian heavy crude processing capability at their Billings, Montana, refinery — 60,000-b/d– during the first half of the year. This, along with seasonal turnaround at other regional refineries, will likely result in increases at the pump for drivers as we head into the spring.

Great Lakes and Central States

As is often the case, volatility has characterized pump prices in the Great Lakes region over the past few weeks. Many states in the region reflected double-digit decreases three weeks ago, only to see gains over the past seven days, led by Indiana (+5 cents), Ohio (+5 cents), Michigan (+4 cents) and Kentucky (+3 cents).

The latest EIA report shows that Midwest gasoline stocks increased by nearly 3.5 million bbl to a total of almost 60 million bbl last week – the fifth consecutive weekly build and a clear sign of low regional demand.

Mid-Atlantic and Northeast

The EIA’s most recent report shows that East Coast inventories increased by 1.9 million bbl last week to 73.5 million bbl on hand – 6 million bbl more than last year. OPIS reports that it is common to see inventories build during the slow winter season, but this level of buildup has pressured market prices lower. Delaware (-4 cents), Maine (-4 cents), West Virginia (-3 cents), New Jersey (- 3 cents), Pennsylvania (-3 cents) and Virginia (-2 cents) all land on the nations list of top ten weekly decreases.

Top10 Lowest Average Gas Prices-2-6-17-01

South and Southeast

Markets in the South and Southeast continue to post some of the lowest prices for retail gasoline in the nation, including South Carolina ($2.03), Alabama ($2.06), Tennessee ($2.06), Mississippi ($2.07), Texas ($2.08), Arkansas ($2.09) and Oklahoma ($2.10). The latest EIA report shows that Gulf Coast crude oil imports jumped over 750,000-b/d last week, to a total of 3.461 million b/d. The region also saw significant increases in U.S. crude oil inventory, with supplies increasing by 8.5 million bbl to 256.7 million bbl last week. OPIS reports that most other regions saw storage levels remain steady or decrease.

PBF Energy began turnaround work at its 197,000-b/d refinery in Chalmette, Louisiana last week that should wrap up by March 3. In addition, the Seaway Crude Pipeline Company LLC is back in full operation. The company released a statement Sunday saying they have restarted their crude pipeline after shutting down January 30 due to a spill near Trenton, Texas.

Oil Market Dynamics

Markets opened Monday morning with slightly higher oil prices following new U.S. sanctions imposed on Iran after its missile tests. Worries that tensions between the U.S. and Iran could impact crude oil supplies have been tempered by increasing U.S. oil production. Baker Hughes, an oil field services company, reported that U.S. energy companies added 17 oil rigs the week of February 3, bringing the total U.S. rig count to 583. The potential for more U.S. oil production has kept a ceiling on oil prices and diminished the impact of efforts by OPEC and non-OPEC countries to cut production and rebalance global oil supply. Traders will keep an eye of U.S.-Iran relations and any further gains in U.S. oil production. At the closing of Friday’s formal trading session on the NYMEX, WTI was up 29 cents to settle at $53.83 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.

 

National Gas Price Average Drops 21 Consecutive Days

January 30th, 2017 by Jessica Souto

Tamra Johnson

Reported updated on Tuesday, January 31, 2017

Continual growth in the number of U.S. oil rigs and the increased drilling it implies are raising expectations for a climb in domestic oil production. Additionally, increased U.S. crude oil production coupled with lower driving demand has kept downward pressure on the national average price at the pump, which has fallen for 21 consecutive days. Today’s national average price for regular unleaded gasoline is $2.27 per gallon, down four cents versus one week ago, five cents less than one month ago, but 47 cents more per gallon year-over-year.

2014-2017_Avg Gas Prices_1-30-17-01

Quick Stats

  • The nation’s top five most expensive markets are: Hawaii ($3.07), California ($2.80), Alaska ($2.74), Washington ($2.73) and Pennsylvania ($2.57).
  • The top five markets with the most dramatic monthly decreases in gas prices include: Ohio (-33 cents), Indiana (-31 cents), Michigan (-18 cents), Illinois (-18 cents) and Kentucky (-17 cents).

Top10 Highest Average Gas Price Template_1-30-17-01

West Coast

Gas prices on the West Coast continue to be the highest in the country, with every state in the region landing on the top ten list of most expensive markets: Hawaii ($3.07), California ($2.80), Alaska ($2.74), Washington ($2.73), Oregon ($2.52) and Nevada ($2.47). Prices have been relatively steady over the past week despite reports of growing gasoline production and supply in the California market. The California Energy Commission (CEC) reports that California reformulated gasoline inventories increased by 227,000 bbl to reach a total of 6.637 million bbl for the week ending January 20. According to CEC, California refiners increased production of the state’s boutique CARB RFG grade gasoline for use out-of-state. There is also growing demand for non-California reformulated gasoline resulting from increased exports to Mexico and typical demand in Nevada and Arizona.

Rockies

Pump prices in the Rocky Mountains have remained steady, moving +/- 2 cents or less in most of the region. Prices are expected to follow the national average decrease this week due to suppliers in most parts of the region dropping prices to help move product. These discounts are most prevalent in Wyoming, where commercial and consumer demand typically drop significantly in midwinter.

Great Lakes and Central States

Pump prices in the Great Lakes region continue to drop this week with five states landing on the list of largest weekly declines: Ohio (-11 cents), Michigan (-9 cents), Illinois (-9 cents), Indiana (-8 cents) and Wisconsin (-4 cents). Like suppliers in the Rockies, those in the Great Lakes and Central region are offering steep discounts to help clear out product. Low demand and healthy supply in the Great Lakes region should continue to pressure prices down over the next week.

Prices for drivers in the Central part of the country remain flat despite the shutdown of the Magellan Pipeline last Wednesday. A leak was discovered on a section of the pipeline in Worth County, Iowa. OPIS reports that Magellan resumed operations on the pipeline between Rosemount, Minnesota, and Mason City, Iowa, on Saturday after “repairs to the damaged section of pipeline were safely completed.” This week Missouri ($2.10) and Oklahoma ($2.11) both appear on the top 10 list of least expensive markets.

Top10 Largest Weekly Declines-1-30-17-01

Mid-Atlantic and Northeast

Prices in the Mid-Atlantic and Northeast followed the national average down this week. Wells Fargo attributes the region’s significantly low demand over the past month to higher than normal rainfall levels, which kept drivers off the road. This includes some of the most densely populated areas along the East Coast. The latest U.S. Energy Information Administration report shows that regional gasoline supply increased by 0.9 million bbl last week, to a total of 71.6 million bbl.

Barring any unexpected impact to production or distribution, prices in the region should continue to drop this week due to low demand and healthy supply. Despite recent drops, Pennsylvania ($2.57), Washington D.C. ($2.52), New York ($2.50) and Connecticut ($2.44) all landed on the list of most expensive markets for the week.

South and Southeast

Pump prices continue to move down in the South and Southeast, with the regions featuring five of the ten cheapest states in the nation: South Carolina ($2.04), Alabama ($2.07), Mississippi ($2.08), Texas ($2.10) and Arkansas ($2.11). The Gulf Coast is home to the bulk of U.S. refining capacity, which helps to keep prices low. Ample supply tied to low demand should keep regional prices down until the seasonal switch to the production of more costly summer-blend gasoline this spring.

Oil Market Dynamics

Markets opened Monday morning posting steady crude oil prices as a result of increased U.S. oil production. Oil-services firm Baker Hughes reported that drillers added 15 rigs in the U.S., bringing the total crude oil rig count to 566, the highest since November 2015. The increased U.S. production continues to offset OPEC’s efforts to rebalance the global oil market. End of month surveys of OPEC production cuts are expected tomorrow and traders will be paying close attention to the cartel’s agreement compliance. Market watchers will also keep a close eye on U.S. production and the impact it has on supply and demand. At the closing of Friday’s formal trading session on the NYMEX, WTI was down 61 cents to settle at $53.17 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.

 

Increased U.S. Oil Production Pushes Pump Prices Lower

January 23rd, 2017 by Jessica Souto

Tamra Johnson

The national average price of gas continues to decline as U.S. oil production increases. Today’s average price of $2.31 per gallon represents a decrease of three cents per gallon on the week, four cents per gallon on the month, and prices have moved lower for 14 of the past 15 days. Despite this recent trend lower, retail averages are up by 46 cents per gallon as compared to one year ago.

2014-2017_Avg Gas Prices_1-23-17-01

  • Quick Stats
  • The nation’s top five least expensive markets are: South Carolina ($2.07), Tennessee ($2.11), Alabama ($2.11), Mississippi ($2.11) and Indiana ($2.12).
  • The states with the largest weekly decreases in gas prices include: Ohio (-13 cents), Michigan (-12 cents), Indiana (-8 cents), Illinois (-8 cents) and Kentucky (-6 cents).

Top10 Lowest Average Gas Prices-1-23-17-01

West Coast

Prices on the West Coast remain the most expensive in the nation, with five states landing on the list of most expensive markets: Hawaii ($3.07), California ($2.80), Alaska ($2.77), Washington ($2.74) and Oregon ($2.54). While prices in most parts of the region have followed the national average trending lower, they have been some of the smallest decreases in the country. Recent reports from the California Energy Commission (CEC) show that California suppliers currently have a supply of summer blend gasoline on hand and are storing barrels until the upcoming seasonal shift to RVP gasoline. In the week ending January 13, RFG production was cut by 350,000 bbl to around 6.6 million bbl, yet inventories jumped 184,000 bbl to 6.35 million bbl.

Supply levels for current season gasoline are healthy across the region. OPIS reports that Valero’s Benicia, California, refinery has set a large turnaround schedule that will begin this month.

Rockies

Prices in the Rockies remained relatively steady over the past week, moving +/- 2 cents or less in most markets. Prices in the region are often geographically insulated from pump price movement tied to global crude oil prices and have generally been among the more stable in the nation.

Great Lakes and Central States

Drivers in the Great Lakes region continue to see impressive discounts with four states in the region topping the list of largest weekly declines: Ohio (-13 cents), Michigan (-12 cents), Indiana (-8 cents) and Illinois (-8 cents). Most Central States, with the exception of Missouri, saw declines on the week. The most recent Energy Information Administration (EIA) report shows that Midwest storage levels increased by 1 million-bbl over the past week, to a total of 53 million bbl. Storage increases paired with a drop in demand this month likely attributed to regional and national price declines. Tennessee ($2.11), Indiana ($2.12), Ohio ($2.13) and Missouri ($2.16) all landed on the top 10 list of least expensive markets.

Top10 Largest Weekly Declines-1-23-17-01

Mid-Atlantic and Northeast

Prices in much of the Mid-Atlantic and Northeast have followed the national average down over the past week with Delaware (- 5 cents), Maryland (-4 cents) and North Carolina (-4 cents) all landing on the top 10 list of largest weekly declines. The latest EIA report shows that total Northeast gasoline stocks increased by 3.4 million bbl to reach a total of 70.7 million bbl, which is the highest level since August 2016. Despite the declines at the pump, Pennsylvania ($2.61), Washington, D.C. ($2.56), New York ($2.52) and Connecticut ($2.46) remain among the top 10 most expensive markets in the country.

South and Southeast

Gas prices in the South and Southeast continue to top the list for lowest prices, with six out of ten of the nation’s cheapest retail markets located in this region: South Carolina ($2.07), Alabama ($2.11), Mississippi ($2.11), Oklahoma ($2.12), Texas ($2.13) and Arkansas ($2.13). Multiple refineries in the Texas area have reported issues over the past few weeks. LyondellBasell’s 302,300-b/d Houston refinery reported a power outage on Friday, while Western Refining’s refinery in El Paso, Texas, is back online after a fire on January 13. U.S. gasoline exports dropped slightly to 923,000 b/d. OPIS reports that the declines can likely be tied to issues with fog on the Gulf Coast over the past few weeks.

Global Market Dynamics

At Sunday’s OPEC meeting, energy ministers announced that the cartel has successfully limited oil output in an effort to reduce oversupply and support crude oil prices. At the meeting, OPEC announced that participating countries had already cut production by 1.5 million barrels per day. Eleven of OPEC’s 13 members along with 11 non-OPEC countries struck an agreement last November to cut production collectively by 1.8 million barrels per day for the first six months of 2017. Participating members also agreed to create a joint technical committee (JTC) to work with the OPEC Secretariat in assembling a production data report that will be released the 17th of every month. The JTC will meet again on March 17 in Kuwait.

OPEC’s production announcement did little to impact crude oil futures, which were trading lower early Monday. The drop is likely a result of an increase in U.S. oil production as evidenced by the 35 additional oilrigs reported by Baker Hughes. The introduction of these new rigs brings the total U.S. rig count to 694, which represents a significant increase in output counteracting OPEC’s production cut. Traders will keep a close eye on how OPEC output cuts and increased U.S. production impact the market moving forward. At the close of Friday’s formal trading session on the NYMEX, WTI closed up $1.05 to settle at $52.42 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.

 

Pump Prices Drop Eight Consecutive Days

January 17th, 2017 by Jessica Souto

Tamra Johnson

Gas prices have fallen for eight consecutive days, reaching today’s national average price of $2.34 per gallon. The price of retail gasoline has retreated since last week with today’s average three cents less per gallon than one week ago, but ten cents more than one month ago and 43 cents more per gallon year-over-year. The slight decrease in retail prices can be attributed to less demand and adequate supply, but this downward dip may only be temporary as the market awaits OPEC’s December monthly output report which is due out later this week.

2014-2017_Avg Gas Prices_1-17-17-01

Quick Stats

  • The nation’s markets that have seen the largest price decreases week-over-week are: Indiana (-13 cents), Ohio (-12 cents), Michigan (-11 cents), Kentucky (-7 cents) and Illinois (-6 cents).
  • The nation’s top five most expensive markets are: Hawaii ($3.06), California ($2.81), Alaska ($2.77), Washington ($2.74) and Pennsylvania ($2.64).

Top10 Largest Weekly Declines-1-17-17-01

West Coast
Drivers on the West Coast continue to pay the nation’s highest averages for gasoline, and the nation’s top four most expensive markets are all in this region: Hawaii ($3.06), California ($2.81), Alaska ($2.77) Washington ($2.74). The region recently saw an unexpected gasoline stock increase of 2 million bbl to 30.5 million bbl, which should help keep prices relatively steady over the next week. The recent restart of BP’s Olympic Pipeline at its Anacortes, Washington, source on Friday also should help improve regional supplies in the northwest over the next few weeks. According to OPIS, BP had to shut down operations on the Olympic Pipeline in Anacortes last Wednesday due to power outages and other issues related to severe winter storms.

Rockies
Most drivers across the Mountain time zone continue to see increases at the pump. Utah (+5 cents), Idaho (+4 cents), Arizona (+3 cents), Montana (+3 cents), Nebraska (+2 cents) and Wyoming (+2 cents), all top the list of largest weekly increases. Recent issues at Western Refining’s refinery in El Paso, Texas, could potentially impact supply in Arizona and parts of New Mexico. OPIS reports that the refinery experienced a fire in a fluid catalytic cracker on Thursday evening. The HollyFrontier Corporation also experienced problems last week with an overheated coker (oil processing unit) at their 52,000-b/d Cheyenne refinery in Wyoming. The refinery primarily serves the eastern slope of the Rocky Mountain region, which includes eastern Colorado, Wyoming and parts of Nebraska. Due to the regions’ insulated location, glitches in refinery production have the potential to impact prices at the pump.

Great Lakes and Central States
Price swings have been common in the Great Lakes and Central states over the past few weeks with five of the top ten weekly price movers landing in the area. The top national decreases in the country are: Indiana (-13 cents), Ohio (-13 cents), Michigan (-11 cents), Kentucky (-8 cents) and Illinois (-6 cents). Prices rose last month following issues at the BP refinery in Whiting, Indiana, but with production reported to have returned to normal, prices in most of the Great Lakes region have moved lower.

Despite fluctuating prices across the Central region, two Central states still rank among the lowest in the nation: Missouri ($2.14) and Tennessee ($2.13).

Top10 Largest Weekly Declines-1-17-17-01

Mid-Atlantic and Northeast
Prices across much of the Mid-Atlantic and Northeast remain relatively steady. Despite the downward price movement nationally, four states in the region are among the 10 most expensive markets in the country: Pennsylvania ($2.64), Washington, D.C. ($2.59), New York ($2.53) and Connecticut ($2.48). OPIS reports that the Colonial Pipeline resumed gasoline delivery on Line 19 from Atlanta, Georgia to Nashville, Tennessee on Thursday after shutting it down last Saturday due to a suspected gasoline leak. Barring any unexpected impact to production or distribution, prices in the region should remain steady over the next week.

South and Southeast
The southern regions remain the nation’s cheapest markets for gasoline, led by South Carolina ($2.11), Tennessee ($2.13), Mississippi ($2.14), Alabama ($2.14), Arkansas ($2.15), Texas ($2.15), Oklahoma ($2.15) and Louisiana ($2.17). 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. Prices in the region should remain on the lower end of the national spectrum provided there are no unexpected disruptions.

Oil Market Dynamics
Markets continue to react to OPEC’s oil production agreement, as participating countries implement cuts. Tuesday saw petroleum futures rise following remarks by Saudi Arabia’s Energy Minister Khalid al-Falih, who said that Saudi Arabia would adhere to the output agreement. He also is confident that the agreed upon production cuts would rebalance the market. Under last fall’s arrangement, OPEC, Russia and other non-cartel members pledged to cut oil output by nearly 1.8 million barrels per day for six months. Energy Minister Falih went on to say that if all countries continued to abide by the OPEC agreement the market would be rebalanced and it would not be necessary to further limit production beyond the six-month agreement.

These comments follow reports that Saudi Arabia has cut production by more than the 486,000 barrels per day. Traders will continue to keep an eye on oil supply and demand as OPEC and non-OPEC countries implement the terms of their agreement. At the closing of Friday’s formal trading session on the NYMEX, WTI was down 64 cents to settle at $52.37 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.

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