The national gas price average is $2.87, which is a penny more expensive on the week. Pump prices in nearly 30 states are seeing a jump of as much as eight cents, a dozen states saw prices drop and another dozen states’ gas price averages remain stable from last Monday.

“Demand for gasoline this summer remains very strong week-over-week, driving gas prices higher alongside rising crude prices,” said Jeanette Casselano, AAA spokesperson. “Today motorists are seeing gas for $2.76 or more at 56 percent of gas stations across the country.”

Today’s gas price average is six-cents cheaper than last month, but 61-cents more expensive than at the same time last year.

Quick Stats

• The nation’s top 10 largest weekly changes are: Delaware (+8 cents), Michigan (-7 cents), Ohio (+6 cents), Indiana (+5 cents), Maryland (+4 cents), New Mexico (-3 cents), Pennsylvania (+3 cents), Georgia (+3 cents), Kentucky (+3 cents) and Oklahoma (+3 cents).
• The nation’s top 10 least expensive markets are: South Carolina ($2.53), Alabama ($2.53), Mississippi ($2.55), Louisiana ($2.58), Arkansas ($2.60), Missouri ($2.61), Tennessee ($2.61), Oklahoma ($2.62), Virginia ($2.62) and Kansas ($2.66).

West Coast

Pump prices in the West Coast region are among the most expensive in the country: Hawaii ($3.73), California ($3.66), Washington ($3.44), Alaska ($3.40), Oregon (3.32), Nevada ($3.24) and Arizona ($3.00). Most prices in the region have declined on the week, with Arizona (-2 cents) leading the group.

Inventories of gasoline in the region fell for a third consecutive week, according to the Energy Information Administration’s (EIA) petroleum status report for the week ending on June 29. Dropping by nearly 150,000 bbl, total inventories now sit at 30.5 million bbl. However, inventories are approximately 2.2 million bbl higher than they were at this point last summer, which will likely help prices stabilize if there are any major supply disruptions in the region this week.

Great Lakes and Central

Gas prices are volatile on the week in the Great Lakes and Central region with gas prices anywhere from seven cents cheaper to six cents more expensive. A handful of states’ gas price averages remain stable on the week. Four states from these regions land on this week’s largest gas price changes list: Michigan (-7 cents), Ohio (+6 cents), Indiana (+5 cents) and Kentucky (+3 cents).

At $2.95, Illinois has the most expensive gas prices in the region followed by Michigan ($2.92). At $2.61, Missouri is the cheapest.

Gasoline inventories built for a fourth week in the region. Adding nearly 440,000 bbl, total inventories sit at 53.7 million bbl. According to the EIA, levels are similar to this time last year.

South and Southeast

States in the South and Southeast are seeing more expensive gas prices on the week, with a jump of as much as three cents in Georgia and Oklahoma. New Mexico (-3 cents) and Florida (-1 cent) were the only states to see a decline at the pump. South Carolina ($2.53) continues to tout the cheapest gas price average in the country and the region.

With gas prices nearly a dime or more cheaper than last month, New Mexico (-13 cents), Texas (-10 cents), Florida (-9 cents) and Alabama (-9 cents) land on the top 10 states with the largest month-over-month changes in pump prices.

Gasoline inventories drew down by nearly 500,000 bbl on the week. Even with the dip, total inventories register close to 83 million bbl, which is on par with levels year-over-year and are keeping prices somewhat stable.

Mid-Atlantic and Northeast

Delaware (+8 cents) is seeing the largest jump at the pump of any state in the Mid-Atlantic and Northeast region on the week. There were no pump price declines, but a few states saw gas prices remain stable: Wisconsin ($2.81), Vermont ($2.92) and Massachusetts ($2.91).

Prices compared to one year ago are as much as 66-cents more expensive with three states landing on the top 10 list of biggest year-over-year changes: Connecticut (+66 cents), Rhode Island (+64 cents) and Massachusetts (+63 cents).

Following last week’s 1.2 million bbl build, the region saw the largest draw of any region in the country at 1.6 million bbl this week, according to EIA data. The Mid-Atlantic and Northeast region inventory level now measures 65.5 million bbl, the lowest level recorded the region in the month of June and a potential factor driving prices this week.

Rockies

Gas prices are mostly cheaper on the week among states in the Rockies: Idaho (-2 cents), Utah (-2 cents) and Wyoming (-1 cent). Colorado’s ($2.85) and Montana’s ($2.93) average held steady the last seven days.

At 7.3 million bbl, total gasoline inventories measure at the highest level in the region since late April. On the week, inventories built by nearly 239,000 bbl and register 363,000 bbl ahead of this time last year, which is an indicator that refinery runs are returning to a normal schedule following a long maintenance season.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased 86 cents to settle at $73.80. Crude prices trended lower last week following EIA’s report that showed U.S. crude oil inventories increased by a total of 1.3 million bbl last week. It was the first time in three weeks that the U.S. has seen a build in inventories, which typically sees drawdowns throughout the summer. At 417.9 million bbl, crude inventories in the U.S. are 85 million bbl lower than they were at this time last year. The surprise build in total crude stocks gave market observers pause amid a slew of other factors influencing the oil market, including increasing geopolitical factors – in Iran, Libya, and Venezuela – potentially destabilizing global supply. Moving into this week, market observers will watch these factors to determine their impact on supply. If it appears that supply could be reduced amid high global crude demand, oil prices may increase.

In related news, the U.S. oil rig count increased by five last week, according to Baker Hughes, Inc., bringing the total number of rigs to 863. When compared to last year’s count at this time, there are 100 more rigs presently.

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.

At $2.86, gas prices are at their highest point for an Independence Day holiday in four years. However, for the nearly 40 million motorists expected to travel this week, they will find prices at the pump 11-cents cheaper than this past Memorial Day holiday.

“The national gas price average has held fairly steady for the past 10 days, suggesting that U.S. demand is keeping pace with supply and stabilizing summer gas prices,” said Jeanette Casselano, AAA spokesperson. “However, elevated crude oil prices and other geopolitical concerns could tilt gas prices more expensive in the early fall despite an expected increase in global crude production from OPEC and its partners.”

AAA is tracking the following factors that will continue to impact pump prices through the fall:

• Domestic crude inventories: For the first summer driving season in five years, the U.S. has seen the largest one-week reduction (9.9 million bbl) in crude inventories. A consistent decline in supplies could spark higher gas prices.
• Crude production and exports: Refinery runs are at an all-time high and exports are at record levels, which impacts supply levels.
• Gasoline demand: The latest Energy Information Administration (EIA) data shows U.S. demand at 9.7 million b/d, one of the highest levels of the year, and could hit a new record with Independence Day holiday travel.
• Crude oil prices: Last week, crude oil hit $74/bbl – its highest level since 2014.
• Geopolitical concerns: Market observers are watching crude production levels in Libya and Venezuela amid economic woes in Venezuela, and details on the Iran sanctions all of which are influencing market prices.

“If U.S. demand remains strong, domestic and global supply decline and crude inventories continues to sell over $70/bbl, motorists may see the national gas prices average to potentially jump back up to nearly $3/gallon in coming months,” added Casselano.

Quick Stats

• The nation’s top 10 least expensive markets are: South Carolina ($2.53), Alabama ($2.53), Mississippi ($2.53), Louisiana ($2.57), Arkansas ($2.58), Oklahoma ($2.59), Tennessee ($2.60), Virginia ($2.60), Missouri ($2.60) and Texas ($2.64).
• The nation’s top 10 largest monthly decreases are: Delaware (-18 cents), Illinois (-16 cents), Indiana (-16 cents), Florida (-15 cents), Virginia (-15 cents), Maryland (-14 cents), Texas (-14 cents), Georgia (-13 cents), Iowa (-13 cents) and Nebraska (-13 cents).

West Coast

Motorists in the West Coast region are seeing the most expensive pump prices in the country: Hawaii ($3.73), California ($3.66), Washington ($3.43), Alaska ($3.41), Oregon (3.31), Nevada ($3.26) and Arizona ($3.02). However, the majority of prices in the region have declined since last week, with Nevada and Arizona seeing the largest decrease at three cents each. Only Oregon saw a slight one penny increase.

According to the EIA’s petroleum report for the week ending on June 22, gasoline stocks in the region fell by 300,000 bbl and now sit at 30.7 million bbl. However, inventories are 1.7 million bbl higher than they were at this point last summer, which will likely help prices stabilize if there are any major supply disruptions in the region this week.

Great Lakes and Central

The majority of motorists in the Great Lakes and Central region are seeing cheaper gas prices –up to three cents less — on the week. However, gas prices are noticeably on the rise in Ohio (+11 cents), Michigan (+10 cents), Indiana (+7 cents), Kentucky (+5 cents) and Illinois (+4 cents) following major decreases in these states at the pump the week prior. It is typical to see this type of volatility from week to week in the region. With the jump, Michigan’s ($2.99) is just a penny away from reaching the $3 threshold with Illinois ($2.94) not far behind.

While most gas prices are cheaper in the region on the week, they are extremely expensive compared to last July. Some Great Lakes and Central states are seeing gas prices that are close to 75-cents more than last year: Indiana (+71 cents), Michigan (+69 cents), Illinois (+65 cents), North Dakota (+64 cents), Kentucky (+63 cents), South Dakota (+63 cents) and Ohio (+63 cents).

On the week, gas prices saw mostly modest changes in the region as gasoline inventories added 600,000 bbl to total 63.2 million bbl, according to the EIA.

South and Southeast

Gas prices in the South and Southeast are seeing volatility on the week with Florida, Oklahoma and South Carolina seeing gas prices increase by three cents while New Mexico, Arkansas and Texas saw prices drop by two cents. All other states are seeing pump prices decline by a penny or remain stable from last Monday. South Carolina ($2.53) has the cheapest gas in the country and the region followed by: Alabama ($2.53), Mississippi ($2.53), Louisiana ($2.57), Arkansas ($2.58) and Oklahoma ($2.59).

Most motorist’s wallets in the region are feeling relief at the pump not just on the week, but on the month with gas price averages double-digits cheaper than just this past June: Florida (-15 cents), Texas (-14 cents), Georgia (-13 cents), Alabama (-12 cents), Mississippi (-12 cents) and South Carolina (-10 cents).

Gasoline inventories continue to register above 83 million despite of an EIA reported decline of 478,000 bbl contributing to the small changes in price at the pump. Overall, inventories are a healthy 784,000 bbl ahead of levels reported this time last year.

Mid-Atlantic and Northeast

On the week, motorists in West Virginia (+3 cents) and Washington, D.C. (+2 cents) were the only states in the Mid-Atlantic and Northeast region to see gas prices increase. Rhode Island (-2 cents) saw the largest decrease while other states saw pump prices drop by a penny or remain stable since last Monday. In the region, Connecticut ($3.08), New York ($3.01), Washington, D.C. ($3.01) and Pennsylvania ($3.01) carry the most expensive state gas price averages.

The U.S. Environmental Protection Agency has announced a decision to change the Air Quality Plan and eliminate the low-grade summer gasoline (7.8-lb RVP) mandate during the May 1 – Sept 15 summer driving season for six western Pennsylvania counties. This type of gasoline is more expensive to produce as compared to winter-blend. The impacted counties include Armstrong, Beaver, Butler, Fayette, Washington and Westmorland counties. The lift of the mandate is set to go into effect August 14, pending any objections. However, it is unclear if suppliers will deliver the lower grade gasoline into the market this summer.

With a build of 1.2 million bbl, the Mid-Atlantic and Northeast region saw the largest build of any in the country. Sitting at 67 million bbl, inventory measures at the highest level since June 2017. The higher inventory levels are contributing towards cheaper gas prices.

Rockies

Idaho ($3.17), Utah ($3.17) and Wyoming ($2.97) rank among the top 15 states with the highest gas price averages in the country this week. Wyoming’s gas price jumped two cents and Colorado’s one-cent to $2.85 on the week.

Wyoming (+5 cents) and Utah (+2 cents) are the only states in the region to see more expensive gas prices compared to last month while gas prices are cheaper in Colorado (-6 cents), Idaho (-2 cents) and Montana (-2 cents).

With a small 86,000 build, inventory levels in the Rockies region sit above 7 million bbl for a second week. Inventories typically measure between 6-7 million bbl during the summer driving season.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased 70 cents to settle at $74.15. Crude prices reached new highs not seen since 2014 following a number of developments that will impact supply in the coming months. These include: OPEC confirming that it will work with its partners to produce a record high 11 million barrels per day of crude in July: the U.S. seeking greater crude oil sanctions on Iran; and the continuing economic crisis in Venezuela.

Moreover, crude prices spiked this week after EIA’s weekly report revealed that for the first summer driving season in five years, the U.S. has seen the largest one-week reduction (9.9 million bbl) in domestic crude inventories. Crude inventories now sit at 416.6 million bbl. When compared to this time last year, total crude inventories around the country are lower by 92.6 million bbl. The market will watch supply and demand closely in July for indicators that increased crude production from OPEC and its partners has helped to meet growing global crude demand. If it appears that supply remains tight amid high demand, prices may continue to climb.

In other news, the U.S. oil rig count dropped by four last week, according to Baker Hughes, Inc., bringing the total number of rigs to 858. However, there are still 102 more rigs now than a year ago.

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.

At $2.85, the national gas price average is five cents cheaper than a week ago, 12-cents less than a month ago, but 58-cents more than a year ago. Gas prices have consistently been declining since Memorial Day. On the week, 49 states saw pump prices drop with and motorists in Indiana and Michigan saw double-digit declines.

Gas prices may be poised to drop even more following OPEC’s announcement that the cartel will increase production by 1 million b/d in the second half of 2018. However, that number may be revised closer to 600,000 b/d, as there is speculation that some producers – including Libya, Venezuela and Iran – will not be able to meet the quota increase. Regardless, the production increase is expected to decrease crude prices and in turn drive down gas prices later this year.

“The OPEC production increase will help to offset concerns of shrinking global supply caused by high global demand this year,” said Jeanette Casselano, AAA spokesperson. “For drivers in the U.S., pump prices likely will not see an impact immediately. Changes, and most likely not dramatic ones, are anticipated to hit pump prices late summer or early fall.”

The cartel made the production decision after the U.S., China and India voiced support for an increase to prevent an oil deficit that could stifle economic growth in the latter half of 2018.  The production increase will occur ahead of this December’s expected dissolution of OPEC’s production reduction agreement, which has worked to reduce global oil supplies and increase the global price of crude since the beginning of 2017.

Quick Stats

• The nation’s top 10 least expensive markets are: South Carolina ($2.50), Mississippi ($2.54), Alabama ($2.54), Oklahoma ($2.56), Louisiana ($2.57), Arkansas ($2.60), Tennessee ($2.60), Virginia ($2.61), Ohio ($2.61) and Missouri ($2.63).
• The nation’s top 10 largest weekly decreases are: Indiana (-14 cents), Michigan (-13 cents), Ohio (-9 cents), Illinois (-8 cents), Kentucky (-7 cents), Missouri (-6 cents), Florida (-5 cents), Texas (-5 cents), Kansas (-5 cents) and South Carolina (-5 cents).

West Coast

Pump prices in the West Coast region are among the most expensive in the country: Hawaii ($3.73), California ($3.68), Washington ($3.44), Alaska ($3.41), Oregon (3.30), Nevada ($3.28) and Arizona ($3.05). On the week, the majority of prices in the region continue to decline, with California and Nevada leading the way at three cents each. Only Hawaii saw a slight increase by a penny.

According to the Energy Information Administration’s (EIA) petroleum report for the week ending on June 15, gasoline stocks in the region fell by 600,000 bbl and now sit at 30.9 million bbl. However, inventories are 1.7 million bbl higher than they were at this point last summer, which will likely help prices stabilize if there are any major supply disruptions in the region this week.

Great Lakes and Central

Six Great Lakes and Central states top the largest weekly decreases list: Indiana (-14 cents), Michigan (-13 cents), Ohio (-9 cents), Illinois (-8 cents), Kentucky (-7 cents) and Missouri (-6 cents). Gas prices are 3-14 cents cheaper than last Monday across the region except in South Dakota ($2.89) where prices remained stable. With the pump price drops, all state gas price averages are now under $3/gallon. Illinois carries the most expensive average at $2.91.

Not only are motorists in Ohio and Indiana seeing large declines in the last seven days, but gas prices are 30-cents and 26-cents cheaper, respectively, compared to last month. In fact, these two states and Michigan (-24 cents) lead the country in the biggest month-over-month decreases.

Inventories built slightly (81,000 bbl) and now sit at 52.6 million bbl. This is the third highest inventory level of all regions in the country, according to EIA data.

South and Southeast

South and Southeast states are seeing pump prices three to six cents cheaper on the week with Florida (-6 cents), Texas (-5 cents), South Carolina (-5 cents) and Georgia (-5 cents) seeing the largest decreases. In the region, state gas price averages range from as cheap as $2.50 in South Carolina to as expensive as $2.90 in New Mexico.

Compared to this time last year, gas prices are 49 to 70 cents more expensive: New Mexico (+70 cents), Oklahoma (+60 cents), Texas (+59 cents), Georgia (+59 cents), Arkansas (+57 cents), South Carolina (+57 cents) and Alabama (+55 cents). Florida (+49 cents) has the smallest year-over-year change.

Gasoline inventories made a substantial build with 3.4 million bbl, according to the latest EIA data. With a total of 83.6 million bbl, regional inventories sit at their highest mark since the end of March and about 1 million bbl ahead of this time last year.

Mid-Atlantic and Northeast

With a two-cent decrease on the week, Washington, D.C.’s gas price average falls below $3/gal, while Pennsylvania ($3.01), New York ($3.02) and Connecticut ($3.09) remain above this mark despite a four, three and three cent decrease, respectively. At a nickel, Maine’s gas price average saw the largest drop of any state in the Mid-Atlantic and Northeast region.

With gas prices nearly a quarter cheaper, Delaware (-24 cents) is seeing the largest month-over-month change of any states in the Mid-Atlantic and Northeast region. Other states seeing double-digit declines on the month: Maryland (-17 cents), Virginia (-15 cents), North Carolina (-13 cents), New Jersey (-13 cents), Tennessee (-13 cents), Pennsylvania (-12 cents), Maine (-11 cents), West Virginia (-11 cents) and Washington, D.C. (-10 cents).

EIA’s latest report shows that with a nearly 250,000 bbl build, regional inventories are sitting at some the highest levels of the year at 66 million bbl and contributing to price drops in the region.

Rockies

Wyoming (+2 cents) was the only state in the country to see an increase on the week. Among states in the Rockies region, Colorado (-3 cents) and Utah (-2 cents), saw the largest decrease, while gas price averages in Montana and Idaho decreased by a penny.

Gas prices are 62-cents more expensive in Utah and Wyoming than they were a year ago. Both states are among the top 12 in the country for largest year-over-year difference in gas prices. In the region, Colorado (+55 cents) has the smallest year-over-year change.

With a 129,000 bbl build, inventories sit just above 7 million bbl. According to EIA data, this is the highest inventory level seen since the end of April when levels measured at 7.2 million bbl.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased $3.04 to settle at $68.58. Oil prices trended higher last week as the market digested OPEC’s announcement and analyzed its potential impact. This analysis is likely to continue influencing prices this week to determine if the supply increase will help to stabilize global crude prices.

On the domestic crude front, EIA’s report last week revealed that total crude inventories in the country decreased by 5.9 million bbl. Moreover, total crude exports hit their second highest rate since EIA began collecting this data at 2.4 million b/d. The rate was an increase of 344,000 b/d from the previous week. These findings highlight that domestic and global demand for crude from the U.S. remains high as OPEC works to increase the amount it supplies around the world.

In other news, the U.S. lost one oil rig last week, according to Baker Hughes, Inc., bringing the total number of rigs to 862. However, there are still 104 more rigs now than a year ago at the same time.

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.

On the week, the national gas price average is two cents cheaper at $2.90. Today’s national average is only one cent more expensive than a month ago, but 60 cents more expensive than a year ago.

Nationwide, 44 states have less expensive or steady gas price averages compared to last Monday. However, the cheaper trend may be reversing. Gasoline demand spiked in the latest Energy Information Administration’s (EIA) report, in fact setting a new all-time record at 9.88 million b/d for the week ending June 8. As demand skyrockets, U.S. gasoline inventories plummeted 2.27 million bbl, to land total inventories at 237 million bbl, which is 5.7 million below stocks last year at this time.

“If demand continues to strengthen and inventories decrease in the weeks ahead, motorists can expect gas prices do a reversal and start to increase again,” said Jeanette Casselano, AAA gas price expert. “AAA expects the national gas price average to range between $2.85 and $3.05 through Labor Day, likely seeing the summer’s highest prices in June.”

Moving into this week, another factor that will influence gas prices in the near and long-term will be outcomes from the June 22 OPEC meeting in Vienna, Austria. The cartel, along with other major producers including Russia, will discuss increasing oil production ahead of the year-end scheduled dissolution of its production reduction agreement. Some reports indicate that OPEC could be looking at an increase of 300,000 to 600,000 b/d to help ease global crude price gains that have grown since the cartel put its production reduction agreement into place at the beginning of 2017. An increase in production would likely decrease crude oil prices and encourage cheaper gas prices.

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii ($3.73), California ($3.71), Washington ($3.45), Alaska ($3.43), Oregon ($3.32), Nevada ($3.31), Utah ($3.19), Idaho ($3.19), Connecticut ($3.11) and Arizona ($3.07).
• The nation’s top 10 largest weekly changes are: Ohio (-10 cents), Florida (-5 cents), Delaware (-5 cents), Indiana (+5 cents), Virginia (-5 cents), Utah (+4 cents), Maryland (-4 cents), Iowa (-4 cents), Kansas (-4 cents) and Illinois (-4 cents).

West Coast

Motorists in the West Coast region are paying the highest pump prices in the country, with all states on the top 10 most expensive list: Hawaii ($3.73), California ($3.71), Washington ($3.45), Alaska ($3.43), Oregon (3.32), Nevada ($3.31) and Arizona ($3.07). On the week, prices continue to mostly decline in the region by a penny or two. However, Hawaii and Alaska each increased by a penny.

According to EIA data for the week ending on June 8, inventories of gasoline grew by 400,000 bbl to reach 31.5 million bbl. Although inventories in the region now sit at their highest level for the second week of June since 2001, ongoing planned maintenance at Shell’s 158,000 b/d Martinez, CA refinery in the Bay area may restrict supplies this week.

Great Lakes and Central

Finding cheaper gas prices at the pump continues this week for the bulk of motorists in the Great Lakes and Central states. Ohio (-10 cents) tops the chart for the biggest weekly change in gas price averages in the country. Also making an appearance on the top 10 changes list: Iowa (-4 cents), Kansas (-4 cents) and Illinois (-4 cents). However, gas prices are more expensive for three states on the week: Indiana (+5 cents), Michigan (+2 cents) and Missouri (+1 cent).

Some states in the region are paying a hefty year-over-year increase. Indiana’s gas price is 80-cents more expensive than last year – the highest of any state in the country and region. Other states at the 55-cent or more mark include Michigan (+70 cents), Illinois (+64 cents), North Dakota (+62 cents), Missouri (+61 cents), Kentucky (+59 cents), Kansas (+58 cents), Wisconsin (+58 cents), Idaho (+57 cents), Ohio (+57 cents), South Dakota (+56 cents) and Minnesota (+56 cents).

Inventory levels bumped up slightly by 300,000 bbl on the week. Levels sit at the 52.5 million mark according to EIA.

South and Southeast

Florida (-5 cents) has the second largest decrease of any state in the country this week. The sunshine state and Georgia carry the most expensive gas price average, $2.77, of all states in the South and Southeast. On the week, state gas price averages are cheaper across the region with Oklahoma seeing the smallest drop at two cents.

For another week, the top six least expensive gas price averages in the country reside in the South and Southeast: South Carolina ($2.55), Mississippi ($2.58), Alabama ($2.58), Louisiana ($2.60), Oklahoma ($2.61) and Arkansas ($2.63).

Falling nearly 1.8 million bbl, the South and Southeast inventory levels dropped to 80 million bbl. However, levels sit just one million below last year at this time, according to EIA data.

Mid-Atlantic and Northeast

Gas prices are one to five cents cheaper across all states in the Mid-Atlantic and Northeast region with Delaware (-5 cents), Virginia (-4 cents), Maryland (-4 cents) and New Jersey (-4 cents) seeing the largest drops on the week. Even with the cheaper pump prices, four states continue to sell gas for $3 or more: Connecticut ($3.11), New York ($3.05), Pennsylvania ($3.04) and Washington, D.C. ($3.01).

Today’s gas prices are 50 to 64 cents more expensive compared to last year at this time with West Virginia seeing the smallest and Connecticut seeing the largest increases year-over-year.

Regional gasoline inventories fell to 65.6 million bbl after a 1.3 million bbl drop on the week. This latest decrease brings the year-over-year deficit for the region to 3.4 million bbl, according to EIA data.

Rockies

On the week, gas prices increased four cents in Utah ($3.19) and a penny in Wyoming ($2.93). Gas prices dropped two cents in Colorado while remaining stable in Montana ($2.95) and Idaho ($3.19). Utah and Idaho continue to carry the most expensive gas prices in the region and among the priciest in the country. The states are the seventh and eighth, respectively, most expensive in the country.

Motorists in the Rockies are paying, on average, 54 to 62 cents a gallon more compared to prices this time last year.

Inventories built by a small 92 bbl on the week. According to EIA data, levels register close to 6.9 million bbl, which is about 680,000 bbl less than this time last year.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased $1.83 cents to settle at $65.06. Oil prices trended marginally higher last week because of a stronger dollar. Looking ahead, this week’s prices will likely see fluctuation ahead of Friday’s OPEC meeting.

According to EIA’s latest weekly petroleum status report, total U.S. production jumped to around 10.9 million b/d, up about 100,000 b/d on the week. However, total crude inventories fell by 4.1 million bbl. Increasing crude exports supported the drop. Last week, exports of crude oil stood at 2.03 million b/d, a week-on-week gain of 316,000 b/d.

Domestic investment in crude production continues to grow. Last week, the U.S. added another oil rig, bringing the current total to 863. When compared to last year’s rig count at this time, there are 116 more active rigs today.

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.

WASHINGTON (June 13, 2018) – Consumers are spending $69 more a month to fill-up compared to last summer. According to AAA, gasoline expenses are accounting, on average, for seven percent of an American’s 2018 annual income, a one and half percent increase since summer of 2017. With strong summer consumer gasoline demand expected in the months ahead, AAA says motorists can expect little relief at the pump with the national gas price average ranging between $2.85 – $3.05 through Labor Day.

“Motorists can expect to spend at least $250 more on gas this season, but that won’t stop them from traveling. Summer is synonymous with road trips and vacation and we are not going to see Americans are giving up this pastime this year,” said Jeanette Casselano, AAA spokesperson. “The higher gas prices may just encourage travelers to shorten their driving distance. While others may pinch pennies by eating out less or finding more free family-fun activities while on vacation.”

According to a AAA survey conducted earlier this year, only one in three (33 percent) respondents said they would change travel plans if gas prices hit $3, while nearly half (47 percent) say $3.50 would be the game changer for their summer plans.

Then and Now Price Points: June 2017 vs. June 2018

As vacationers hit the road, they will find a quarter (25 percent) of all gas stations across the country are selling gas for more than $3/gallon. That is a stark difference from one year ago when only 5 percent of stations touted the $3 or more mark. The chart below compares the percentage of stations per state selling gas for $3.01 or more today versus one year ago.

Don’t Let Your Tank Break Your Bank.

For when you are behind the wheel this summer, AAA offers these tips to improve your driving to get better gas mileage:

• Observe the speed limit. Not only is it safer, it can help you save money.
• Lose the weight. The heavier your car, the more fuel it uses.
• Accelerate gradually. Avoid jackrabbit starts.
• Drive during cooler parts of the day. Cooler, denser air can boost power and mileage.
• Maintain recommended tire pressure. Low pressure reduces fuel economy and can damage tires.

The Outliers

Gas prices have shown some positive downward movement at the start of the month, but it is too early to determine if this is a trend. AAA has identified the following outliers that have the ability to drive gas prices – up or down – in the coming months.

• OPEC – This year, global demand has outpaced global supply, which has driven the cost of crude oil to near-three year highs of $72/bbl in May. Since Memorial Day there have been conflicting reports that OPEC – which made a pact with other large producers to cut crude production in 2017 to help drain the then-glut of global supply – may or may not increase production to help ease supply concerns. The speculative news is already having a volatile impact, driving the price of crude down to $64/bbl and up to as high as $65/bbl levels in June. OPEC may announce a decision on increasing supply at its next meeting on June 22 in Vienna, Austria. Should OPEC and its partners increase supply motorists would likely see pump prices decrease late summer.
• OPEC may announce a decision on increasing supply at their next meeting on June 22 in Vienna, Austria. Should OPEC and its partners increase supply motorists would likely see pump prices decrease late summer.
• Hurricanes – Hurricane season is underway (June 1 – November 30). According to the National Oceanic and Atmospheric Administration (NOAA), there is a 75 percent chance of a “near- or above-normal” level of major storms this year. Moreover, NOAA’s forecasters predict a 70 percent chance of 10-16 named storms – of which five to nine could become hurricanes with winds of at least 74 miles per hour. The mere threat of a storm could force oil and gasoline companies, especially along the Gulf Coast, to halt gas operations, potentially leading to spikes in gas prices and limited regional supply.
• Exports – Gasoline exports from the U.S. have grown throughout 2018. In fact, the Energy Information Administration’s (EIA’s) final measurement for March 2018 showed that exports hit 951,000 b/d and became the highest March rate on record. This trend is likely to continue throughout the summer, growing closer to one million b/d, which could help boost gas prices domestically because of robust demand. More than half of the U.S. gasoline exports go to Mexico, according to EIA.
• Demand – According to the EIA’s latest reading for consumer gasoline demand, March 2018 saw nearly 9.45 million b/d, representing the strongest demand measurement for a March on record and a one percent increase from last year. AAA expects the high and potentially record-breaking consumer demand trend to continue through the summer, pushing prices higher.

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.

About AAA: As North America’s largest motoring and leisure travel organization, AAA provides more than 58 million members with automotive, travel, insurance and financial services through its federation of 36 motor clubs and nearly 1,100 branch offices across North America. Since 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for safe mobility. Drivers can request roadside assistance, identify nearby gas prices, locate discounts, book a hotel or map a route via the AAA Mobile app. To join, visit AAA.com.

At $2.92, the national gas price average has dropped four cents since the beginning of June. Today’s average is three cents less than a week ago, six cents more than a month ago and 58 cents more expensive than a year ago. On the week, only eight states saw prices increase while all others dropped by as much as 13 cents or remained stable.

“Gas prices continue to dip across the country, but remain nearly 50-cents more expensive than last summer in every state,” said Jeanette Casselano, AAA gas price expert. “The higher prices seem to be influencing driving habits. While consumer gasoline demand remains strong, it is slowing and not growing.”

Dropping by 713,000 b/d, the Energy Information Administration (EIA) reports that demand registers – for the first time since mid-January – just under 9 million b/d. This is surprising, as levels have consistently measured above the 9 million mark every week in June since 2015.

Quick Stats

• The nation’s top 10 least expensive markets are: South Carolina ($2.58), Mississippi ($2.61), Alabama ($2.61), Oklahoma ($2.62), Louisiana ($2.62), Arkansas ($2.65), Tennessee ($2.67), Missouri ($2.68), Virginia ($2.70) and Kansas ($2.73).

• The nation’s top 10 largest weekly decreases are: Indiana (-13 cents), Illinois (-7 cents), Delaware (-7 cents), District of Columbia (-7 cents), Florida (-6 cents), Maryland (-5 cents), Virginia (-4 cents), New Jersey (-4 cents), Wisconsin (-4 cents) and Maine (-4 cents).

West Coast

Pump prices in the West Coast region are among the highest in the country, all topping out above $3.00 per gallon: California ($3.72); Hawaii ($3.71); Washington ($3.46); Alaska ($3.43); Oregon (3.34); Nevada ($3.33); and Arizona ($3.07). On the week, prices continue to mostly decline in the region by a penny or two. However, Arizona (+1 cent) and Alaska (+2 cents) saw increases, while Oregon (-2 cents) saw the largest decrease in the region.

According to EIA data for the week ending on June 1, inventories of gasoline fell by 200,000 bbl to reach 31.1 million bbl. When compared to a year ago, levels are still up more than 3 million bbl and could contribute to price stabilization in coming weeks.

Great Lakes and Central

The majority of states in the Great Lakes and Central region are seeing cheaper gas prices on the week. Indiana (-13 cents) saw the only double-digit drop in the country, which brings the state’s gas price average ($2.87) well under the $3 mark it was at last Monday. Other notable week-over-week pump price decreases in the region: Illinois (-7 cents), Wisconsin (-4 cents) and Iowa (-4 cents). However, not every state is seeing this trend. Four states saw prices jump including Kansas (+2 cents), Ohio (+2 cents), Michigan (+2 cents) and South Dakota (+1 cent). With the weekly increase, Michigan’s gas price average is at the $3 mark, making the state’s average the second most expensive in the region behind Illinois ($3.02).

Inventory levels continue to hold slightly above the 52 million bbl mark. According to the latest data released by the EIA, this is the lowest inventory levels of the year for the region and about 2.6 million bbl below levels at this time last year.

South and Southeast

Gas prices are getting cheaper, slowly, but surely in the South and Southeast. With this week’s drops, Florida has seen an 11-cent decrease since Memorial Day. On the week, gas prices in the region are six to one cent cheaper in every state.

The country’s cheapest gas price averages can be found in the region with these states claiming the top six least expensive spots: South Carolina ($2.58), Mississippi ($2.61), Alabama ($2.61), Oklahoma ($2.62), Louisiana ($2.62) and Arkansas ($2.65).

Gasoline inventories bumped up to 82 million bbl following this week’s 3 million bbl add, according to EIA’s latest report. This is the highest build for any region on the week and puts a 12 million bbl difference between the South and Southeast and the Mid-Atlantic and Northeast, the region with the second highest inventory in the country. If inventories continue to increase sustainably, motorists could see some, but not major, relief at the pump.

Mid-Atlantic and Northeast

With a seven-cent decrease, Delaware and Washington, D.C. have the largest drop in gas prices of all states in the region on the week. This lands Delaware and Washington, D.C. on the top 10 list of largest weekly changes in the country along with four other Mid-Atlantic and Northeast states: Maryland (-5 cents), Virginia (-4 cents), New Jersey (-4 cents) and Maine (-4 cents). Cheaper gas prices at the pump is a trend motorists are seeing across all states in the region.

With the drops, New Jersey’s ($2.96) and Rhode Island’s ($2.99) gas price averages fall below $3 while four other state averages remain above this mark: Connecticut ($3.13), Pennsylvania ($3.07), New York ($3.07) and Washington, D.C. ($3.03).

Adding a substantial 2.2 million bbl to inventories, regional levels register at 67 million bbl and are likely a factor driving gas prices down.  However, despite the build, the region has a 2 million-inventory deficit compared to EIA’s data for this time last year.

Rockies

On the week, gas prices increased a penny in Wyoming and Utah. Gas prices dropped one cent in Colorado while remaining stable in Montana ($2.95). Idaho ($3.19) and Utah ($3.15) continue to carry the most expensive gas prices in the region and among the priciest in the country. The states are the seventh and eighth, respectively, most expensive in the country.

Motorists in the Rockies are paying, on average, 54 to 62 cents a gallon more compared to prices this time last year.

For a second week, inventories have dropped, albeit by just 49,000 bbl. Levels register at 6.8 million bbl according to EIA data, which is about 800,000 bbl less than this time last year.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased 21 cents to settle at $65.74. Oil prices trended marginally lower last week following EIA’s report that crude production hit 10.8 million b/d last week. The estimate sets another weekly domestic record, which has been a reoccurring phenomenon in 2018. When compared to last year at this time, the U.S. is producing roughly 1.5 million b/d more this year.

Oil prices will continue to be volatile this week. Contributing factors include reports that OPEC may not announce an increase in crude production at the next OPEC meeting scheduled for June 22 in Vienna, Austria. Prior to Memorial Day reports speculated that OPEC would increase production, which contributed to oil prices going down. In addition, economic turmoil in Venezuela has reduced the major global crude supplier’s production rates at a time when global supply is already shrinking.

Additionally, Baker Hughes, Inc. reported that the U.S. added one oil rig last week, bringing the total to 862. The total is up by 121 rigs when compared to last year at this time.

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.

Dropping by two-cents on the week, the national gas price average is $2.95. This is the first time there has been a decrease in the national average since mid-March. The drop, albeit it small, follows the latest Energy Information Administration (EIA) report showing consistently strong demand although it is running slightly below (100,000 b/d less) the same week last year.

“Nearly 80 percent of Americans say the price of gasoline is too high at $3 per gallon. So it’s welcome news for motorists to see gas price averages decrease in 33 states on the week,” said Jeanette Casselano, AAA gas price expert. “Crude oil prices are falling, but it likely won’t be enough to drop gas prices more significantly this summer.”

Today’s gas price average ($2.95) is 13-cents more than one month ago and 57-cents more than the beginning of June 2017. On the week, the majority of states saw decreases or hold steady, while those that saw prices jump were mostly West Coast and Rockies states.

Quick Stats

• The nation’s top 10 least expensive markets are: South Carolina ($2.62), Mississippi ($2.64), Alabama ($2.65), Oklahoma ($2.66), Louisiana ($2.66), Arkansas ($2.67), Missouri ($2.69), Tennessee ($2.70), Kansas ($2.71) and Virginia ($2.74)
• The nation’s top 10 largest weekly decreases are: Michigan (-12 cents), Ohio (-10 cents), Delaware (-8 cents), Kentucky (-7 cents), Florida (-5 cents), Maryland (-5 cents), Oklahoma (-3 cents), South Carolina (-3 cents), North Carolina (-3 cents) and Virginia (-3 cents).

West Coast

Drivers in the West Coast region are paying some of the highest gas prices in the country: California ($3.73), Hawaii ($3.71), Washington ($3.47), Alaska ($3.41), Oregon (3.35), Nevada ($3.33) and Arizona ($3.06). On the week, most gas prices in the region are flat, with Alaska and Arizona seeing the largest increases at two cents each.

According to EIA data for the week ending on May 25, inventories of gasoline climbed by an astonishing 1 million bbl to 31.3 million bbl. When compared to a year ago, levels are up more than 3 million bbl and could contribute to price stabilization in coming weeks.

Great Lakes and Central

On the week, Michigan’s gas price average ($2.98) dropped 12-cents, wiping out the previous week’s increases and lands prices below $3 for the first time in nearly two weeks. Michigan’s decrease was the biggest week-over-week change in the country. Fellow Great Lakes and Central states Ohio (-10 cents) and Kentucky (-7 cents) take the country’s second and fourth spots, respectively, with the largest decreases on the week. However, not every state is seeing less expensive prices. South Dakota’s and North Dakota’s state average (+2 cents) jumped since last Monday.

In the region, motorists will find the most expensive state gas prices averages in Illinois ($3.09), Indiana ($3.00) and Michigan ($2.98). The cheapest state averages can be found in Missouri ($2.69), Kansas ($2.71) and Ohio ($2.77).

Following EIA’s previous report of a regional 1.7 million bbl draw, gasoline inventories built in the latest report by 67,000 bbl on the week in the Great Lakes and Central states region. At the 52 million bbl mark, total inventories are on par with levels the past two years at this time. EIA data shows that levels fluctuate between 48-55 million bbl during the summer months.

South and Southeast

Florida (-5 cent), Oklahoma (-3 cent) and South Carolina (-3 cent) land on the top 10 list with the biggest weekly decreases. Gas price drops in the South and Southeast have been few and far between in the past two months. In the region, Texas was the only state to see gas prices increase. All other states saw prices moderately decrease or hold steady on the week.

The South and Southeast region is home to the top five cheapest gas price averages: South Carolina ($2.62), Mississippi ($2.64), Alabama ($2.65), Oklahoma ($2.66) and Louisiana ($2.66)

Gasoline inventories continue to sit at nearly 79 million bbl, which is on par with levels the past two years at this time. The region saw a small draw of 24,000 bbl on the week, according to EIA’s latest report.

Mid-Atlantic and Northeast

For the first time in months, pump prices decreased or held steady on the week for motorists in every state in the Mid-Atlantic and Northeast region. The most notable declines: Delaware (-8 cents), Maryland (-5 cents), North Carolina (-3 cents), Virginia (-3 cents) and Tennessee (-3 cent).

In the region, Connecticut ($3.15), Pennsylvania ($3.10), Washington, D.C. ($3.09), New York ($3.09), Rhode Island ($3.01) and New Jersey ($3.00) carry the most expensive gas prices. At $2.70, Tennessee motorist are paying the cheapest on average in the Mid-Atlantic and Northeast region.

Inventories dropped by nearly 525,000 bbl on the week in the Mid-Atlantic and Northeast region bringing totals to 64.7 million bbl. At the start of the summer driving season, inventories are at a 3.7 million deficit compared to last year.

Rockies

Most states in the Rockies region saw modest price jumps this week: Montana (+3 cents), Wyoming (+1 cents) and Idaho (+1 cent). Both Utah ($3.14) and Colorado ($2.90) saw prices drop by a penny.

Month over month, motorists in Colorado (+23 cents), Montana (+22 cents) and Wyoming (+19 cents) have seen sticker shock with gas prices increasing nearly a whole quarter compared to the beginning of last month (May 4). Planned seasonal refinery maintenance in the region has contributed to higher gas prices.

The region’s total inventories continue to measure at 6.9 million bbl, which is relatively unchanged on the week. EIA historical data shows that during the 2016 and 2017 summer season, inventories fluctuated between 6.3 and 7.5 million bbl.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI dropped $1.23 to settle at $65.81. Crude prices fell at the end of the week because the dollar gained amid news of continued growth in the total number of jobs across the country. Earlier in the week, crude prices rose briefly after EIA’s weekly petroleum report showed that crude inventories fell by 3.6 million bbl.

Last week, EIA also released final crude production rates for March 2018, revealing that it hit a record-breaking 10.47 million b/d. The rate increased by 223,000 b/d from February 2018. Continued growth in crude production may reduce crude prices as it signals that supply is growing alongside strong global crude demand.

This continued crude production growth will put another spotlight on OPEC’s supply reduction agreement with its partners, which has been in place since the beginning of 2017. The agreement, which includes production from Russia, is set to expire at the end of 2018. However, member countries of OPEC and Russia have been discussing potentially easing supply limits ahead of the agreement’s dissolution at the end of the year. If the cartel and its partners decide to increase crude output, they will likely announce the decision on June 22 at the next OPEC meeting in Vienna, Austria.

Additionally, Baker Hughes, Inc. reported that the U.S. added two oil rigs last week, bringing the total to 861. The total is up by 128 rigs when compared to last year at this time.

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.

Over the long holiday weekend, the national gas price average has held steady for five days at $2.97, signaling that prices may be stabilizing as we head into June. This development comes as crude oil prices start to fall following some of the highest prices in three-years.

“At the start of the holiday weekend, reports indicated that OPEC may raise production levels to help ease global supply concerns. The announcement immediately brought down the price of crude – which has dropped nearly $3/bbl since Thursday,” said Jeanette Casselano, AAA spokesperson. “This is welcome news to motorists who have not only seen pump prices increase, on average, 16-cents since the beginning of May, but are paying the highest prices to fill up since 2014.”

Gas prices, however, remain very expensive. On the week, three states have been added to the list of states with a gas price average of $3 or more – making for 17 states in total. Another four states are just pennies away from joining this list, including Indiana, Maryland, New Mexico and Massachusetts.

Quick Stats

• The nation’s top 10 largest monthly increases are: Wisconsin (+27 cents), Colorado (+26 cents), Minnesota (+25 cents), North Dakota (+24 cents), Illinois (+23 cents), Wyoming (+23 cents), Michigan (+23 cents), Montana (+22 cents), New Mexico (+21 cents) and Connecticut (+20 cents).
• The nation’s top 10 most expensive markets are: California ($3.74), Hawaii ($3.71), Washington ($3.46), Alaska ($3.40), Oregon ($3.35), Nevada ($3.33), Idaho ($3.18), Connecticut ($3.15), Utah ($3.15) and Pennsylvania ($3.12).

West Coast

Pump prices in the West Coast region are the highest in the nation: California ($3.74), Hawaii ($3.71), Washington ($3.46), Alaska ($3.40), Oregon (3.35), Nevada ($3.33) and Arizona ($3.05). On the week, all gas prices in the region are up, with Arizona (+5 cents) seeing the largest increase. Washington, Alaska and Oregon were close behind as each state saw their average increase by four cents.

According to the Energy Information Administration’s (EIA) report for the week ending on May 18, inventories of gasoline climbed by 500,000 bbl to 30.2 million bbl. When compared to a year ago, levels are up over 1 million bbl.

Great Lakes and Central

With a 10-cent increase, Michigan has the largest week-over-week increase in the country followed by Illinois (+7 cents). Also seeing large jumps in the region on the week with five-cent increases are: Wisconsin, Nebraska and North Dakota. All other states saw prices increase one to four cents since last Tuesday.

Indiana ($2.98) is just two-cents away from hitting the $3 threshold and joining Illinois ($3.11) and Michigan ($3.09).

Plunging 1.7 million bbl, gasoline inventories in the Great Lakes and Central states sit at their lowest levels of the year (52.6 million bbl). According to EIA data, this past January was the last time the region saw inventories under 53 million bbl.

South and Southeast

After a week of steady gas prices, Floridians ($2.91) are paying, on average, six-cents more a gallon to fill up. That is the third biggest weekly increase in the country on the week. With a nickel jump, Georgia has the fourth biggest increase of all states.

Comparing gas price averages in the South and Southeast to a year ago, Louisiana has the smallest increase at 53-cents, while New Mexico (67-cents) touts the biggest year-over-year increase.

With a 770,000 bbl add, the South and Southeast’s gasoline inventories sit at nearly 79 million bbl, a healthy measure for May, which historically fluctuates between 76 – 82 million bbl this time of year.

Mid-Atlantic and Northeast

Gas prices are as much as a nickel more expensive on the week in the Mid-Atlantic and Northeast region with Rhode Island and Tennessee seeing this price jump. West Virginia saw the smallest increase at two-cents.

Year-over-year, Connecticut (+64 cents) and Rhode Island (+63 cents) are seeing the largest increases in the region. Both of these states have gas price averages of $3 or more, $3.15 and $3.02, respectively, along with Pennsylvania ($3.12), Washington, D.C. ($3.10), New York ($3.10) and New Jersey ($3.02).

Inventories increased by a substantial 2 million bbl on the week – the largest add of any region according to the EIA. At 65.2 million bbl in total, inventories are among the healthiest levels of the year, yet a nearly 5 million bbl deficit compared to late May 2017.

Rockies

With a nickel increase, Wyoming, Colorado and Montana are among the top 11 states in the country with the biggest pump price jumps on the week. As the region enters heavy tourism season, motorists in these states, as well as Utah and Idaho, can expect prices to continue to increase. Currently gas prices across the region are: Idaho ($3.18), Utah ($3.15), Montana ($2.92), Colorado ($2.91) and Wyoming ($2.89).

The latest EIA report shows a nearly 250,000 bbl build on the week. At 6.9 million bbl in total, inventories sit more than a half a million barrels below levels at this time last year.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI fell $2.83 cents to settle at $67.88. Oil prices fell following reports that OPEC may increase output by about 1 million b/d ahead of schedule in order to ease continued crude price growth as economic turmoil in Venezuela and renewed U.S. imposed sanctions on Iran could further reduce global supply. Energy ministers from Russia, Saudi Arabia and the United Arab Emirates met in St. Petersburg, Russia, last week to review the status of their global oil supply reduction agreement, which has helped to decrease global oil supplies and raise prices since the beginning of 2017. The pact is scheduled to dissolve at the end of 2018. If OPEC and its partners announce a supply increase, it will likely occur at the next OPEC meeting on June 22 in Vienna, Austria.

Oil prices also declined after EIA’s weekly report showed that total crude inventories grew by 5.7 million bbl. A decrease in crude exports, an increase in imports and record-breaking crude production contributed to the inventory growth. The news was a surprise to the market, which expected to see inventories decline in the run-up to Memorial Day weekend. If the trend continues in the weeks to come, crude prices may continue to edge lower. At 438.1 million bbl, stocks are 78.2 million bbl lower than they were at this time last year.

Additionally, Baker Hughes, Inc. reported that the U.S. added 15 oil rigs last week, bringing the total to 859. The total is up by 137 rigs when compared to last year at this time.

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 jumped 12 cents over the past 14 days, and six-cents since last Monday, landing the national average at $2.93 – the highest price point going into the Memorial Day weekend since 2014.

“AAA forecasts nearly 37 million travelers will hit the road for the holiday weekend. Compared to an average of the last three Memorial Day weekends, pump prices are nearly 50 cents more expensive and climbing,” said Jeanette Casselano, AAA spokesperson. “Trends are indicating that this summer is likely to bring the national average to at least $3/gallon.”

Today, 14 states tout an average of $3.00 or more. Outside of the typical West Coast states, Idaho and Utah, this count includes six Northeast and Mid-West states: Connecticut, Pennsylvania, New York, Washington, D.C., Illinois and Michigan. In addition, Arizona, New Jersey, and Rhode Island are all within four-cents of hitting the $3 mark.

Quick Stats

• The largest monthly increases are: Minnesota (+28 cents), Wisconsin (+27 cents), Missouri (+25 cents), Connecticut (+23 cents), Delaware (+23 cents), Illinois (+23 cents), Wyoming (+22 cents), Kansas (+22 cents), Arizona (+21 cents) and Texas (+21 cents).
• The nation’s topten most expensive markets are: California ($3.71), Hawaii ($3.68), Washington ($3.41), Alaska ($3.36), Nevada ($3.32), Oregon ($3.31), Idaho ($3.16), Utah ($3.14), Connecticut ($3.11) and Pennsylvania ($3.08).

West Coast

The West Coast region is home to the states with the highest gas prices in the nation: California ($3.71), Hawaii ($3.68), Washington ($3.41), Alaska ($3.36), Nevada ($3.32), Oregon ($3.31) and Arizona ($3.00). On the week, prices in the region have all increased. Arizona (+6 cents) saw the largest increase, while Washington and Alaska are close behind with each state’s average for unleaded regular gasoline increasing by four cents.

Motorists in Arizona (+70 cents) are seeing the largest year-over-year increase in the region and the second largest weekly increase in the country. Of West Coast states, California (+66 cents) and Hawaii (+62 cents) join Arizona on this top 10 list this week.

For the week ending on May 11, the Energy Information Administration (EIA) revealed that gas stocks fell by approximately 200,000 bbl to 29.7 million bbl. Current inventory levels are 600,000 stronger than they were at the same time last year, with increasing imports helping to buoy inventories. Imports increased by 50,000 bbl to 117,000 bbl last week.

Great Lakes and Central

As gas prices continue to increase across the country, two Great Lakes and Central states have averages of $3 or more: Illinois ($3.04) and Michigan ($3.00). At $2.95, Indiana may hit the $3/gal mark before June arrives.

On the week, seven states made their way on to the Top 10 list with the biggest increases: Indiana (+9 cents), Minnesota (+9 cents), Wisconsin (+9 cents), North Dakota (+9 cents), Kansas (+8 cents), Michigan (+8 cents) and Illinois (+8 cents).

In the region, motorists in Illinois (+65 cents) and Indiana (+63 cents) are seeing the largest year-over-year difference in gas price averages.

Gasoline inventories have been declining week-over-week for two months. However, with the latest draw (1.6 million bbl), gasoline inventories measure at 54 million bbl, which is about one million more than this time last year.

South and Southeast

The South and Southeast continue to tout the cheapest gas in the country, but prices are at least 50-cents more expensive than this time last year. The chart below lists the five cheapest gas price averages in the region on May 21, 2017 compared to today, May 21, 2018:

Following the previous week’s 10-cent increase, Florida’s gas price average held steady on the week at $2.82. However, all other states are seeing prices continue to climb with the start of the work week: New Mexico (+8 cents), Texas (+8 cents), Georgia (+7 cents), Louisiana (+7 cents) Oklahoma (+6 cents), Arkansas (+6 cents) and South Carolina (+6 cents).

With a 1 million bbl draw, the South and Southeast regions have dialed back on gasoline inventories for a third consecutive week. Inventory levels fall to 78 million bbl – the lowest inventory level for this week in May since 2016.

Mid-Atlantic and Northeast

Gas prices are 3- to 7-cents more expensive on the week for Mid-Atlantic and Northeast states. New York and Connecticut both saw the largest jump of seven cents followed by these states that saw  a six-cent increase: Maryland, Washington, D.C. and North Carolina.

State gas price averages for Connecticut ($3.11), Pennsylvania ($3.08), New York ($3.07) and Washington, D.C. ($3.06) remain above the $3/gallon price point with New Jersey ($2.99) likely to join this list potentially by Memorial Day and Rhode Island ($2.96) not far behind.

Compared to a year ago, Delaware (+63 cents) and New Jersey (+62 cents) state gas price averages have the biggest increases of all states in the region.

Despite a nearly 675,000 bbl draw, inventories continue to measure above the 63 million bbl level. That being said, compared to this time last year, inventories are at a 7 million bbl deficit in the Mid-Atlantic and Northeast region.

Rockies

Utah (-1 cent) was the only state in the country and region to see gas prices drop on the week. Even with that slight decrease, however, Utah ($3.14) and Idaho ($3.16) continue to make an appearance on the Top 10 list of states with the most expensive gas price averages on the week. They also land on the Top 10 list with the largest year-over-year difference in gas price averages. Utah (+71 cents) leads the nation and Idaho (+61 cents) ranks 10^th.

Montana (+8 cents) leads the region with the biggest spike in prices on the week, followed by Colorado (+7 cents) and Wyoming (+5 cents). Motorists can expect to see prices continue to increase as tourism seasons kicks off in the Rockies region, which traditionally means inventory dwindles to the lowest levels of the year.

At 6.6 million bbl, inventories are at the lowest for the year and 1.1 million bbl below levels this time last year.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI fell 21 cents to settle at $71.28. Oil prices edged higher last week following the release of EIA’s weekly petroleum report that showed total crude inventories dropped by 1.4 million bbl. If this week’s EIA report shows another inventory draw, we can expect crude prices to continue climbing.

Additionally, at 2.57 million b/d, crude exports last week saw the highest rate ever recorded by EIA. The new record rate was 690,000 b/d more than the previous week and 1.48 million b/d more than this time last year. The surge in exports is attributed to growth in domestic crude production and Congress and the Obama Administration lifting the 40-year crude export ban in 2015.

Steady growth in crude exports from the U.S. will likely put another spotlight on the crude reduction agreement between OPEC and non-OPEC producers, which is set to expire at the end of 2018. Amid strong global demand and reduced output from OPEC and its partners, including Russia, the U.S. has been able to sell more crude to foreign buyers. Moreover, although the U.S. did not add any active oil rigs last week, according to Baker Hughes, Inc., the current total – 844 – is 124 more rigs than this time last year.

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.

At $2.87, the national gas price average jumped six cents on the week in part due to the White House’s decision to re-impose sanctions on Iran. As a result, 36 states are seeing gas prices that are a nickel or more expensive than last Monday.

“The Administration’s move combined with the switchover to summer blend, growing global demand and shrinking supply continues to fuel pump prices as we approach the summer driving season,” said Jeanette Casselano, AAA spokesperson. “AAA predicts that the national average may reach $3/gallon this summer, especially if crude oil prices continue to increase.”

Motorists are seeing 19 percent of gas stations selling gas for $3.01 or more. Today’s gas price is 16-cents more expensive than one month ago and 53-cents more than one year ago.

Quick Stats

• The nation’s top 10 most expensive markets are: California ($3.69), Hawaii ($3.67), Washington ($3.38), Alaska ($3.31), Nevada ($3.30), Oregon ($3.28), Utah ($3.15), Idaho ($3.14), Connecticut ($3.04) and Pennsylvania ($3.04).
• The nation’s top 10 states with the largest weekly increases are: Ohio (+15 cents), Missouri (+12 cents), Kentucky (+11 cents), Minnesota (+11 cents), Delaware (+10 cents), Florida (+10 cents), Colorado (+9 cents), Maryland (+8 cents), Oklahoma (+8 cents) and West Virginia (+8 cents).

West Coast

Drivers in the West Coast region are paying the highest pump prices in the nation: California ($3.69), Hawaii ($3.67), Washington ($3.38), Alaska ($3.31), Nevada ($3.30), Oregon ($3.28) and Arizona ($2.94). On the week, prices in the region have all increased. California and Washington saw the biggest leap at six cents each, while Alaska (+3 cents) saw the smallest increase.

According to the Energy Information Administration’s (EIA) petroleum report for the week ending on May 4, the West Coast region saw a decline in gas stocks, falling by nearly 700,000 bbl to 29.85 million bbl. An increase in demand and a drop in imports, which fell by more than half from the previous high last week of 192,000 b/d to 67,000 b/d, helped gas stocks fall in the region. However, when compared to this time last year, current total stocks of gasoline in the region are higher by more than 200,000 bbl.

Great Lakes and Central

Following a week of decreases, gas prices are showing signs of volatility in the Great Lakes and Central states. On the week, Ohio gas prices jumped 15-cents when last Monday (May 7) gas prices had seen an 8 cent-decrease from the previous week. The region often sees this volatile pattern with increases and decreases from week to week. Ohio’s jump is the largest of any state in the country on the week. Also seeing large price increases in the region on the week: Missouri (+12 cents), Kentucky (+11 cents), Minnesota (+11 cents), Wisconsin (+8 cents), Iowa (+8 cents), Nebraska (+8 cents), North Dakota (+8 cents), Illinois (+7 cents) and Michigan (+7 cents).

With a 328,000 bbl draw, gasoline inventories continue to dwindle in the Great Lakes and Central states. Despite more than two months of declines, however, total gasoline inventories are nearly 1 million bbl above last year’s levels measuring at 56 million bbl.

South and Southeast

Florida (+10 cents) saw the largest jump in gas price averages on the week in the region and had the sixth largest jump in the country. Also seeing noticeable spikes in the last seven days: Oklahoma (+8 cents), Texas (+6 cents), New Mexico (+5 cents) and Arkansas (+5 cents).  The remaining states saw moderate jumps or no price change (Georgia).

At $2.56, Mississippi carries the least expensive gasoline in the country and the region, followed by Louisiana ($2.57), Arkansas ($2.58), South Carolina ($2.58), Alabama ($2.58) and Oklahoma ($2.59).

The South and Southeast region took the largest draw in the country with 2.7 million bbl on the week. With the draw, levels fall to 79 million bbl – the lowest inventory level the region has seen since the beginning of December 2017.

Mid-Atlantic and Northeast

Hitting the $3 mark, Connecticut ($3.04), New York ($3.00) and Washington, D.C. ($3.00) join Pennsylvania ($3.04) as some of the top 12 states with the most expensive gas prices in the country. These four states are also the only states on the east coast with gas price averages at $3 or more.

Prices are more expensive on the week across the region with Delaware (+10 cents), Maryland (+8 cents) and West Virginia (+8 cents) seeing the largest jumps on the week.

Inventories continue to grow in the region and measure at 68 million bbl. On the week, 1.8 million bbl were added to inventory. The region was the only one in the country to see inventories plus up.

Rockies

Jumping 10-cents on the week, Colorado ($2.75) lands on this week’s top 10 list of states with the largest increases. Prices continue to increase across the region: Wyoming (+6 cents), Utah (+6 cents), Montana (+5 cents) and Idaho (+3 cents).  At $3.15, Utah carries the most expensive state average in the region, followed by Idaho ($3.14). Both state averages are among the 10 most expensive in the country.

Inventories drew down for a second week by 275,000 bbl. Regional inventory sits just under 7 million bbl in total and 1.5 million blow this time last year.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI dropped 66 cents to settle at $70.70. Oil prices climbed to new highs for 2018 last week, following President Trump’s decision to re-impose economic sanctions on Iran and withdraw the U.S. from the Iran Nuclear Deal. Set in 2015 under the Obama Administration, the U.S. – along with the European Union, five permanent members of the UN Security Council, and Germany – entered into the deal that lifted economic sanctions on Tehran in exchange for the country downsizing its nuclear program. Some of the pre-2015 sanctions targeted the Iranian energy sector and impeded Iran’s ability to sell oil. With those sanctions being re-imposed in the next 3-6 months, Iran’s crude exports are forecasted to decrease, contributing to already declining global crude supplies amid growing global demand. Increased fears of instability in the region may push oil prices even higher this week.

Crude prices may also increase if EIA’s weekly report shows another drop in domestic crude inventories.  Last week, the report revealed that U.S. crude inventories fell by 2.2 million bbl. At 433.8 million bbl, inventories around the country are approximately 88.8 million bbl lower than were they were in May 2017. Domestic inventories have fallen steadily since OPEC and other large producers, including Russia, have reduced their combined output since the beginning of 2017. The agreement is set to expire at the end of this year, as U.S. production continues to climb. It shows no signs of slowing anytime soon, with Baker Hughes, Inc. reporting that the U.S. gained 10 oil rigs last week. The total, 844, is 132 more rigs than last year at this time.

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.