WASHINGTON, D.C. (November 7, 2022)—Despite fewer U.S. drivers fueling up, the national average pump price rose four cents over the past week to hit $3.80. Rising oil prices fueled by worries over Russian oil production cuts have renewed concerns about global supplies. But the rise could be short-lived as reports of new Covid-19 restrictions in China signal a potential economic slowdown for the world’s top oil-consuming nation.
“The oil market, like the stock market, hates negative headlines, no matter how speculative,” said Andrew Gross, AAA spokesperson. “And that is why we see the oil price back over $90 a barrel. More expensive oil usually leads to more expensive gasoline, but the recent Covid-related news from China may stem this increase.”
According to data from the Energy Information Administration (EIA), gas demand dipped slightly from 8.93 million b/d to 8.66 million b/d last week, and total domestic gasoline stocks decreased by 1.3 million bbl to 206.6 million bbl. Tighter supply and fluctuating oil prices have put upward pressure on gasoline prices. Pump prices could increase if supply remains tight alongside rising oil prices.
Today’s national average of $3.80 is nine cents less than a month ago and 38 cents more than a year ago.
Quick Stats
The nation’s top 10 largest weekly changes: Indiana (+37 cents), Wisconsin (+31 cents), Michigan (+27 cents), Ohio (+21 cents), Illinois (+17 cents), Florida (+16 cents), Oregon (−13 cents), Kentucky (+12 cents), California (−11 cents) and Delaware (+10 cents).
The nation’s top 10 least expensive markets: Georgia ($3.12), Texas ($3.17), Mississippi ($3.20), Arkansas ($3.24), Louisiana ($3.26), Tennessee ($3.28), South Carolina ($3.28), Alabama ($3.30), North Carolina ($3.36) and Missouri ($3.36).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $4.44 to settle at $92.61. Crude prices spiked at the end of last week after the dollar dropped in value. Moreover, the price of oil rose after the EIA reported that total domestic crude stocks had declined by 3.1 million bbl. However, for this week, crude oil prices could face headwinds if market concerns regarding the likelihood of a recession persist. If economic growth stalls or reverses course, crude demand is likely to follow suit alongside prices.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
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