Posts Tagged ‘AAA Fuel’

Gas Demand Sees Significant One-Week Increase

June 29th, 2020 by EEdmonds

On the week, gasoline demand, as estimated by the Energy Information Administration (EIA), increased 10% from 7.8 million bbl to 8.6 million bbl. While the demand rate is much lower than a typical summer reading, it’s the highest recorded since late March showing continued signs that Americans are filling up more.

“The increase in gasoline demand contributed towards the national gas price average’s four cent jump to $2.17. While that average will continue to increase ahead of the Independence Day holiday weekend, travelers will find pump prices about 50 cents cheaper than last year’s holiday,” said Jeanette Casselano, AAA spokesperson.

AAA did not release an Independence Day holiday travel forecast this year, but does forecast that Americans will take 683 million road trips from July 1 – September 30. Before you hit the road for the holiday or a summer trip, AAA recommends:

  • Make sure your vehicle is road trip ready – have your engine and oil levels checked.
  • Include an emergency road kit in your vehicle with an extra cell phone charger, first-aid kit, a blanket, flashlight, basic tools, jumper cables, and gloves.
  • Visit AAA’s COVID-19 Travel Restrictions Map at TripTik.AAA.com for the latest state and local travel restrictions.
  • Pack face coverings, cleaning supplies and a thermometer.
  • Take all necessary travel documentation, including health insurance cards.

Quick Stats

  • The nation’s top 10 largest weekly increases: Kentucky (+9 cents), Michigan (+9 cents), West Virginia (+9 cents), North Carolina (+8 cents), Colorado (+8 cents), Indiana (+8 cents), South Carolina (+7 cents), Pennsylvania (+7 cents), Minnesota (+6 cents) and Georgia (+6 cents).
  • The nation’s top 10 largest monthly increases: Colorado (+41 cents), Montana (+35 cents), West Virginia (+28 cents), Kansas (+28 cents), Kentucky (+27 cents), North Dakota (+27 cents), Delaware (+27 cents), South Carolina (+26 cents), Texas (+24 cents) and North Carolina (+24 cents).

Mid-Atlantic and Northeast

Mid-Atlantic and Northeast states saw fairly large pump price jumps compared to recent weeks with increases ranging from 4 to 9 cents. West Virginia (+9 cents), North Carolina (+8 cents) and Pennsylvania (+7 cents) saw the biggest increases in the region and land on this week’s top 10 largest weekly increases list. All other states saw prices fluctuate between four and eight cents with the exception of New York (+2 cents).

With the exception of Virginia ($1.96), all Mid-Atlantic and Northeast state averages are $2 per gallon or more. Pennsylvania ($2.43) carries the most expensive average in the region and also lands on this week’s respective top 10 most expensive markets list in the country.

Most states in the region saw smaller increases at the pump likely due to the large increase in gasoline stocks, which added 1.3 million bbl, according to EIA data. Regional gasoline stocks sit at 75.4 million bbl. Gas prices are likely to increase for most states in the region, but the tri-states – New York, New Jersey and Connecticut – may see smaller jumps due to the requirement that travelers from states with high coronavirus rates quarantine upon arrival.

Rockies

All states in the Rockies region saw gas prices increase, but there was volatility to how expensive they pushed: Colorado (+8 cents), Montana (+5 cents), Wyoming (+4 cents) and Idaho (+2 cents). State gas price averages in the region rank among the most expensive in the country, with Colorado ($2.46) and Idaho ($2.34) landing on this week’s top 10 list.

The larger jumps in pump prices are a little surprising as regional gasoline stocks held steady at 7.3 million bbl and refinery rates increased by 2%. Changes like these typically lead to less volatility, which could be seen in the week ahead.

 West Coast

Pump prices across the West Coast region increased last week, and prices likely are poised for more increases ahead of the holiday weekend. Alaska and Arizona the saw largest increases in the region at +5 cents. Hawaii ($3.18) and California ($3.07) remain the most expensive markets in the country. Washington ($2.72), Nevada ($2.61), Oregon ($2.59), Alaska ($2.48) and Arizona ($2.34) follow.

According to EIA’s latest weekly report, total gas stocks in the region increased slightly from 30.1 million bbl to 30.2 million bbl last week. Increasing stocks, alongside increasing demand, may help to slow pump price increases this week in the region.

South and Southeast

This Independence Day holiday weekend motorists will find the cheapest gas prices in the South and Southeast region. On the week, New Mexico ($2.01) and Florida ($2.02) are the only states in the region with an average greater than $2 per gallon and to see increases less than a nickel. Pump prices jumped as much as nine cents for all other states in the region on the week.

Stocks saw a minimal draw of 700,000 bbl to push total stock levels to 90.1 million bbl. The region could see a large draw next week, following the holiday weekend, which could cause gas prices to increase ahead of the holiday. However, gas demand could decrease in states in the region that see an increase in coronavirus infections, which could delay reopening plans.  

Great Lakes and Central States

It was a volatile week at the pump across the Great Lakes and Central States. Kentucky (+9 cents), Michigan (+9 cents) and Minnesota (+6 cents) saw the largest increases in the region and land on the top 10 list for largest weekly jumps in the country.

Gasoline stocks in the region saw a substantial 1.9 million bbl draw, which is one reason for the fluctuation in gas prices. However, refinery rates saw the largest increase, at 7%, of any region in the country, according to EIA data, which could lead to a build in stocks in the agency’s next report and smaller increases at the pump.

Oil Market Dynamics

 At the end of Friday’s formal trading session, WTI decreased by 23 cents to settle at $38.49 per barrel. Domestic crude prices pushed cheaper last week due to an increase in new coronavirus infections worldwide, which could suppress crude demand if stay at home orders increase. For this week, crude prices could continue to decline if the market continues to worry that efforts to stimulate the global economy will falter because of uncontained outbreaks.

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.

The rate at which gas prices are increasing across the country is slowing. Thirty states only saw an increase of a penny or two, causing the national average to push more expensive by three cents to $2.13 since last Monday.

The slower rate can be tied to demand. Measuring at 7.87 million b/d, gasoline demand saw a small week-over-week decline and continues to be significantly lower (21%) compared to this week last year.

“Demand levels are likely to ebb and flow in the coming weeks as people continue to be cautious about travel,” said Jeanette Casselano, AAA spokesperson. As a result, pump prices will likely continue to increase, but at a slower rate through the end of the month.

Today’s national average is 19 cents more expensive than a month ago, but remains significantly cheaper – 53 cents – than a year ago.

Quick Stats 

  • The nation’s top 10 largest weekly increases: Delaware (+10 cents), West Virginia (+9 cents), North Dakota (+9 cents), Montana (+8 cents), Washington, D.C. (+6 cents), Virginia (+6 cents), Colorado (+6 cents), Ohio (+6 cents), Maryland (+5 cents) and Wisconsin (+5 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.76), Louisiana ($1.79), Alabama ($1.83), Arkansas ($1.83), Texas ($1.83), Oklahoma ($1.84), Missouri ($1.85), South Carolina ($1.86), Tennessee ($1.89) and Kansas ($1.92).

Rockies

Montana (+8 cents) and Colorado (+6 cents) had the largest jumps in the region, which also landed both states on the country’s top 10 list again this week. The Rockies region’s three other state averages only saw changes of just a few cents, including a decline: Utah (-1 cent), Idaho (+2 cents) and Wyoming (+3 cents).

At the start of the week, state averages are: Colorado ($2.38), Idaho ($2.32), Utah ($2.26), Montana ($2.12) and Wyoming ($2.07).

Regional gasoline stocks dipped by a small 340,000 bbl to drop total levels to 7.3 million bbl. The EIA reports regional refinery utilization saw a second week of significant increase, jumping up to 82%. That is a 13% increase since the week ending May 22. The increase in utilization will likely yield higher stocks and in turn help to minimize pump price increases.

 West Coast

Pump prices in the West Coast region mostly increased last week, and prices likely are poised for more increases this week. Nevada (+5 cents) saw largest increase in the region, while Hawaii (-2 cents) saw the only decline. Hawaii ($3.16) and California ($3.04) remain the most expensive markets in the country. Washington ($2.68), Nevada ($2.58), Oregon ($2.57), Alaska ($2.43) and Arizona ($2.29) follow.

According to EIA’s latest weekly report, total gas stocks in the region increased slightly from 30.1 million bbl to 30.2 million bbl last week. Increasing stocks, alongside increasing demand, may help to slow pump price increases this week in the region.

South and Southeast

State gas price averages in the South and Southeast region only increased a few pennies on the week. While Florida ($2.02) remains the only state in the region with an average greater than $2 per gallon, New Mexico ($1.98) and Georgia ($1.92) are likely the next states to break this threshold. At $1.76, Mississippi carries the cheapest average in the region and country.

After a few weeks of stock builds, the EIA reports the South and Southeast region saw a draw of just under 1 million bbl. Total stocks drop down to 90.8 million bbl, which is still a significant 10 million bbl surplus. The rate at which gas prices increase has started to slow in the region, which is likely to continue to be the trend for the rest of the month, although a spike ahead of the July 4 holiday weekend can’t be ruled out.

Mid-Atlantic and Northeast

Weekly increases were minimal – one to three cents – for the majority of the region with the exception of these three states: Delaware (+10 cents), West Virginia (+9 cents) and Maryland (+5 cents).

For motorists filling up within the Mid-Atlantic and Northeast region, they can expect to find state averages fluctuating from a high of $2.36 in Pennsylvania to a low of $1.92 in Virginia.

The prior week’s nearly 1 million bbl build was wiped out with a draw of 1 million bbl according to EIA data for the week ending June 12. Regional gasoline stocks sit at 74.1 million bbl as refinery utilization dipped just under 50%. AAA expects the region to see gas prices continue to increase in the weeks ahead, especially as more Americans feel comfortable traveling.

Great Lakes and Central States

As forecasted, the bulk of the region saw smaller increases on the week at three cents or less, although two Great Lakes and Central states landed on the top 10 list for largest weekly jumps: North Dakota (+9 cents) and Ohio (+6 cents).

The region was just one of two to see stocks build. According to the EIA, stocks increased by 455,000 bbl to push total levels to 54.5 million bbl. On trend with the rest of the country, gas prices in the region will continue to increase, though at a slower rate, in the week ahead.

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI increased by 91 cents to settle at $39.75 per barrel. Domestic crude prices increased at the end of last week amid increased market optimism regarding trade relations between the U.S. and China and greater focus on compliance with the production reduction agreement between the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, which has worked to cut global crude production by 9.7 million b/d since May 1, 2020. It remains unclear if OPEC’s agreement will extend into August; it is currently set to expire at the end of July. For this week, crude prices will likely remain volatile as the market assesses if global crude demand will decrease due to a spike in new coronavirus infections worldwide.

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.

Americans are filling up at the pump more and more. Since mid-May, gasoline demand has increased 18% to 7.9 million b/d, according to the latest Energy Information Administration (EIA) report. The slow, but steady rise in demand has pushed the national pump price more expensive by 13% in the same timeframe. Today’s national average is $2.10. That is seven cents more on the week, 24 cents more on the month, but 59 cents cheaper on the year.

“As Americans drive more, they are re-fueling gasoline demand levels, which is helping to lift pump prices, said Jeanette Casselano, AAA spokesperson. “Higher demand will contribute to increasing gas prices in the coming weeks, but they aren’t going to spike to typical summer prices. That’s because demand won’t be sufficient enough to drive down stocks levels. Gasoline stocks sit at a significant surplus of nearly 24 million bbl year-over-year.”

Today, only one-third of state averages are $1.99 per gallon or less and the majority of those are states in the South and Southeast.

Quick Stats

  • The nation’s top 10 largest weekly increases: North Carolina (+13 cents), Montana (+12 cents), Texas (+12 cents), South Carolina (+12 cents), Nebraska (+12 cents), Colorado (+12 cents), Kansas (+11 cents), Florida (+11 cents), Wisconsin (+11 cents) and Georgia (+10 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.74), Louisiana ($1.76), Arkansas ($1.79), Alabama ($1.80), Texas ($1.81), Oklahoma ($1.81), Missouri ($1.85), South Carolina ($1.85), Virginia ($1.86) and Tennessee ($1.87).

Rockies

Motorists in the Rockies region are enjoying some of the largest year-over-year pump price savings. Four of the five states land on the top 10 list for largest yearly difference: Idaho (-84 cents), Montana (-84 cents), Utah (-84 cents) and Wyoming (-80 cents). Coloradoans are seeing a savings, but at a much lower amount of about 50 cents less from last June.

On the week, Rockies states saw gas price averages increase from a few pennies to double-digits. At 12 cents, Colorado and Montana had some of the largest jumps and land on the country’s top 10 list. With this week’s increases, all states in the Rockies have averages of $2.03/gallon or more.

Regional gasoline stocks held steady at 7.6 million bbl, but EIA data shows regional refinery utilization increased by 6% up to 77%. The Rockies region has the second highest refinery rate in the country. Should stocks increase that would help to minimize large pump price jumps in coming weeks.

West Coast

Pump prices in the West Coast region increased last week, and prices are poised for more increases this week. Alaska (+8 cents) and Arizona (+8 cents) saw the largest increases in the region. Hawaii ($3.18) and California ($3.00) remain the most expensive markets in the country. Washington ($2.64), Nevada ($2.53), Oregon ($2.55), Alaska ($2.41) and Arizona ($2.29) follow.

According to EIA’s latest weekly report, total gas stocks in the region increased slightly from 29.8 million bbl to 30.1 million bbl last week. Increasing stocks, alongside increasing demand, may help to slow pump price increases this week in the region.

Great Lakes and Central States

Eight Great Lakes and Central state averages pushed more expensive by double-digits on the week. Nebraska (+12 cents), Kansas (+11 cents) and Wisconsin (+11 cents) had the largest increases in the region and land among the top 10 states with the biggest weekly jump. Illinois (+1 cent) and Indiana (+2 cents) saw the smallest weekly increases seen in the region.  State averages in the region range from $1.84 to $2.30.

The large price swings are surprising given that regional gasoline stocks and refinery utilization both held steady on the week at 54 million bbl and 75%, respectively, according to EIA data. Typically large jumps at the pump coincide with a large draw in stocks. However, this region typically sees high volatility in price swings from week to week. It’s likely many of the states which saw large increases in the last week will see smaller increases in the week ahead.

South and Southeast

Louisiana ($1.76) and New Mexico ($1.97) were the only states in the South and Southeast region to not see double-digit increases at the pump. All other states saw gas prices push more expensive by 10 to 12 cents, with Texas (+12 cents), South Carolina (+12 cents) and Florida (+11 cents) seeing the largest increases. These three states also land on the top 10 list for largest weekly increases in the country.

On the week, gasoline stocks built by only 100,000 bbl, to 91.7 million bbl. Refinery utilization rates were reported by the EIA at nearly 78%, a small 2% increase from the week prior. The small increases in stocks and refinery rates would typically mean smaller increases at the pump, especially with a utilization rate that is at its highest point in two months. Motorists could expect to see prices increase at a slower rate in the week ahead given these latest spikes.

Mid-Atlantic and Northeast

While pump price volatility in the Mid-Atlantic and Northeast is low compared to other regions, within the region there were significant pump price jumps on the week. West Virginia ($2.03) and Virginia ($1.86) saw the largest increases at nine cents and seven cents, respectively, followed by Maryland (+7 cents) and Kentucky. New York (+1 cent), which just started to open up in the last week, saw the smallest increase. 

With a nearly 1 million bbl build, regional gasoline stocks sit at 75.1 million bbl. That is the second highest stock level in the country and the highest level for the region since February 2017. It’s likely the region could see continued spikes at the pump in the week ahead as demand builds and motorists return to the road in larger numbers.

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI decreased by eight cents to settle at $36.34 per barrel. Domestic crude prices decreased last week amid increased market concern that an increase in new coronavirus infections could lead to another reduction in crude demand. Additionally, EIA’s weekly report showed that total domestic crude inventories grew by 5.7 million bbl last week, bringing the total to 538.1 million bbl. The increase in crude supplies also helped to push prices lower, since it signals that domestic crude production may need to reduce further in order to meet lower than normal demand. If these trends continue this week, crude prices could decline further.

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 held steady at $2.56, but motorists can expect some volatility at the pump in the coming days and weeks. Over the weekend, Saudi Arabia experienced drone attacks on two major oil facilities – including the world’s largest, Abqaiq. The attacks have taken 5.7 million (crude) barrels per day off the market, accounting for about 6% of the global supply.

Prior to the attacks, global crude oil supply was very healthy, in fact sitting on a global glut of stocks. Regardless, initial market reaction to the attacks spiked crude oil prices.  At the start of the work week, crude oil (West Texas Intermediate, WTI) is trading for $5/bbl more than on Friday’s closing, up to $61/bbl – a price point for crude not seen since May.

“Americans can expect local pump prices to start to increase this week. The jump could end up being as much as a quarter per gallon throughout this month,” said Jeanette Casselano, AAA spokesperson. “Whether this is a short or long term trend will be determined by the price of crude oil prices and how quickly the facilities in Saudi Arabia can recover and get back online.”

Damage to the facilities is still being accessed, but there is no word if it will be days, weeks or even months before infrastructure is repaired. To ease concerns, President Trump said he has authorized the release of crude from the Strategic Petroleum Reserve. Other Saudi-oil-consuming countries also have emergency reserves to help back-fill the global loss, if needed.

Notably, the U.S. currently depends less on crude imports from Saudi Arabia. The latest Energy Information Administration (EIA) report showed that the U.S. imported the least amount of crude oil from Saudi this decade. In the first half of this year, on average the U.S. imported about 18,000 bbl compared to 35,600 bbl in the first half of 2017.

While U.S. gasoline stock levels have been decreasing the past few weeks, total domestic stocks sit at 228 million bbl, which is ahead of the five-year average for this time of year by several million bbl. Today’s national gas price average is 7 cents cheaper than last month and 28 cents cheaper than this time last year. But these gaps are likely to shrink as the market adjusts to the news and crude oil prices increase.

Quick Stats

  • The nation’s top 10 largest weekly changes are: Ohio (+13 cents), Michigan (-9 cents), Delaware (+9 cents), Illinois (+6 cents), New Mexico (+5 cents), Georgia (+4 cents), Colorado (+4 cents), Utah (-3 cents), Oklahoma (+3 cents) and Louisiana (+3 cents).
  • The nation’s top 10 least expensive markets are: Mississippi ($2.18), Louisiana ($2.20), Alabama ($2.22), South Carolina ($2.22), Arkansas ($2.24), Texas ($2.26), Tennessee ($2.27), Oklahoma ($2.28), Virginia ($2.28) and Missouri ($2.29).

South and Southeast

On the week, motorists in the South and Southeast are seeing volatility, though it is not overly drastic. New Mexico (+5 cents), Georgia (+4 cents), Oklahoma (+3 cents) and Louisiana (+3 cents) rank among the top 10 states with the largest weekly changes. A total of six states saw prices increase between two to five cents since last Monday, while the remaining states saw prices decrease by a few pennies. State averages range from $2.18 to $2.42.

Part of the pump price increases for the six states can be attributed to gasoline stocks, which decreased for a second week. The latest draw was 1.1 million bbl, dropping total levels to 76 million bbl, which is the lowest stock level seen since the end of 2017, according to EIA data. Stocks are likely to continue to decline given the weekend news of the Saudi attack. Falling stocks paired with a likely increase in crude oil prices will likely lead to more expensive gas prices for the region.

Great Lakes and Central States

Pump prices range from as much as 13 cents more expensive to nine cents cheaper in the region on the week. Ohio (+13 cents) and Michigan (-9 cents) saw the biggest weekly changes in the region and the country. Gas prices are noticeably more expensive in Illinois (+6 cents), while Kansas (+2 cents), Missouri (+1 cent), Indiana (+1 cent), Kentucky (+1 cent) and Nebraska are more expensive but just by a couple of pennies.

Gasoline stocks built by a significant 1.6 million bbl in EIA’s latest report. That increases total stocks for the Great Lakes and Central States to 53 million bbl, which is on par with levels this time last year. Regional refinery utilization remains strong at 100%, which should ultimately lead to cheaper gas prices for the region. However, any major jumps in crude oil prices may reverse this trend and lead to more expensive gas prices nationally and in the region.

Mid-Atlantic and Northeast

The majority of the Mid-Atlantic and Northeast states have gas prices that are cheaper or stable compared to last week. Only four states saw upward movement at the pump this week: Delaware (+9 cents), Maryland (+3 cents), Tennessee (+2 cents) and Pennsylvania (+1 cent). With a three cent decrease, Connecticut ($2.68) saw the largest change in pump prices. At the start of the week, New York ($2.72) has the most expensive average of all states in the region and ranks as the 10th most expensive in the country.

Gasoline stocks drew down by a significant 1.4 million bbl, dropping levels to 63.6 million bbl. Stocks in the region have mostly been building as of late, though slowly since July. This is the largest draw seen during this timeframe and measures at a 3.1 million bbl deficit compared to this time last year. It is likely more states will see fluctuation in the week ahead, especially as crude oil increases.

Rockies

Colorado (+3 cents) was the only state in the region to see an increase at the pump this week. Utah (-3 cents) saw the largest decrease followed by Wyoming (-2 cents), Idaho (-1 cent) and Montana (-1 cent). The Rockies region is averaging pump prices at $2.70/gallon.

The region’s stock dropped by 100,000 bbl to measure at 7.4 million bbl in EIA’s latest report. In addition, regional refinery utilization fell from 102% down to 94% signaling that stocks are positioned to further decrease and likely push regional gas prices more expensive.

West Coast

Pump prices in the West Coast region are the highest in the nation, with all states in the region landing on the top 10 most expensive list today. Hawaii ($3.64) and California ($3.63) are the most expensive markets in the country. Washington ($3.18), Nevada ($3.10), Oregon ($3.03), Alaska ($2.95) and Arizona ($2.83) follow. All state averages in the region have marginally decreased on the week. Hawaii, Washington, Nevada and Oregon saw the largest decreases at a penny each.

The EIA’s recent report for the week ending on September 9, showed that total West Coast motor gasoline stocks climbed by 300,000 bbl to 28.7 million bbl. The increase is a reversal from the previous four-week period that saw total stockpiles decrease by about 3.5 million bbl. The stock growth will likely help pump prices continue to decline as motorists in the region enter the lower demand fall driving season this week. However, as with the rest of the nation, increasing crude oil prices are likely to reverse this trend.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by 24 cents to settle at $54.85, but on Monday, the price was up to $61/bbl.

Overall, oil prices were mixed. Early in the week, oil prices fell after reports emerged that the Trump Administration is considering relaxing sanctions on Iran, which would put more oil into an already oversupplied market. However, the losses were tempered by EIA’s weekly report showing that total domestic crude inventories fell by 6.9 million bbl last week. They now sit at 416.1 million bbl, which is nearly 20 million bbl higher than were they were at this same time last year. For this week, crude prices will see increases due to increased tension in the Middle East – specifically stemming from the attacks in Saudi Arabia –  and could be bolstered by increased optimism that China and the U.S., the world’s two largest crude consumers, may be nearing a resolution to the trade war.

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 Price Trends Falling into Place for Autumn

September 9th, 2019 by AAA Public Affairs

Gas prices continue to trend – slowly, but surely – cheaper with half of all states seeing pump prices drop two-cents on the week. This caused the national average to push cheaper by a penny down to $2.56. Today’s average is 11-cents less than a month ago and 28-cents cheaper than a year ago. 

In its latest weekly report, the Energy Information Administration (EIA) notes that U.S. gasoline demand saw a steady decline from 9.9 million b/d to 9.4 million b/d, a reading typical for the start of fall. In addition to the drop in demand, EIA data also shows that domestic gasoline stocks fell by 2 million bbl, which is mostly attributed to exports.

“Gasoline demand in early September generally declines alongside stock levels as refineries prepare for the switchover to winter-blend gasoline and undergo maintenance,” said Jeanette Casselano, AAA spokesperson. “These typical trends mean savings for motorists, leading the way for potentially some of the cheapest gas prices at the end of the year.”

While state averages range from as expensive as $3.65 in Hawaii to as cheap as $2.16 in Mississippi, nearly all state averages are 20-55 cents cheaper than this time last year.

Quick Stats

  • The nation’s top 10 largest weekly changes are: Ohio (-13 cents), Illinois (-7 cents), Michigan (+4 cents), New Jersey (-4 cents), Washington, D.C. (-4 cents), Rhode Island (-4 cents), Maryland (-4 cents), Massachusetts (-3 cents), Connecticut (-3 cents) and Indiana (+3 cents).
  • The nation’s top 10 least expensive markets are: Mississippi ($2.16), Louisiana ($2.17), Alabama ($2.20), Arkansas ($2.23), South Carolina ($2.23), Oklahoma ($2.25), Tennessee ($2.25), Texas ($2.27), Missouri ($2.28) and Virginia ($2.29).

South and Southeast

Gas prices in Florida are inching down toward pre-Hurricane Dorian pump prices. Ahead of the storm, Florida’s average spiked eight cents from $2.36 to $2.44. Today’s state average is $2.42. Georgia and South Carolina saw minimal impact from the storm.

On the week, all states have cheaper or stable gas prices – by as much as three cents. Across the region, state averages range between $2.16 – $2.42.

Gas prices in the coming week may see volatility due to fluctuation with gasoline stocks. While regional refinery utilization holds strong at 95%, gasoline stocks dropped by 3.2 million bbl in the EIA’s latest report. That sinks total stock levels to 77.1 million, which is the lowest level at the end of August for the region since 2015. The draw can be attributed to an increase in exports, which is a trend typically seen in the fall. The fluctuation in stocks could lead to some slight increases at the pump this week, but likely only by a few cents. 

Mid-Atlantic and Northeast

Compared to a year ago, pump prices in the Mid-Atlantic and Northeast states are 22 to 55 cents cheaper, with Delaware (-55 cents) having the largest change in the country. Maryland (-42 cents) and Washington, D.C. (-37 cents) also land on the top 10 list for largest yearly decreases.

The yearly gas price gap is likely only to widen more. with all states in the region seeing gas prices decrease or remain stable on the week.

Prices should remain mostly stable or cheaper for the coming week as the latest EIA data reports increases in regional gasoline stocks. Additionally, regional refinery utilization bumped up for the week ending August 30. Stocks have been consistently building for the past five weeks, up from 59.1 million bbl to 65 million bbl. However, at 65 million bbl, supplies still lag behind year-ago levels but are ahead of the five-year average. 

Great Lakes and Central States

While gas prices are 13 cents cheaper on the week in Ohio ($2.47), motorists in Michigan ($2.64) are paying nearly a nickel more compared to last Monday. Also seeing increases at the pump at the start of the workweek: Indiana (+3 cents), Kansas (+1 cent) and Missouri (+1 cent). Volatility is no stranger to the Great Lakes and Central States, where gas prices can fluctuate either way despite strong gasoline stock levels and healthy demand.

For the past three weeks, gasoline stocks have hovered at the 51 million bbl mark while regional refinery utilization stabilized mostly at 100%, according to the EIA. These two factors should ultimately keep gas prices cheaper for the region for the coming weeks with the exception of typical volatility mostly in Ohio, Michigan and Illinois.

Rockies

Motorists in Colorado ($2.57) are paying three cents more to fill-up on the week – the only state in the region to see an increase at the pump. Utah and Idaho prices are both three cents cheaper. Pump prices were stable on the week in Wyoming ($2.68) and Montana ($2.72).

All states in the region rank among the top 15 most expensive gas prices in the country with the exception of Colorado, which ranks 20th. That being said, pump prices across the region are on average 33 cents less than this time last year.

Gasoline stocks saw a small build of 54,000 bbl to bump regional stock levels to 7.5 million. The EIA data also reports held regional refinery utilization is strong at 102%. In fact, since mid-July regional refinery utilization has been at or above the 100% mark for six weeks. This ultimately has contributed to higher stock levels and lower gas prices for motorist in the Rockies states.

West Coast

Motorists in the West Coast region are paying the highest pump prices in the nation, with all states in the region landing on the top 10 most expensive list today. Hawaii ($3.65) and California ($3.63) are the most expensive markets in the country. Washington ($3.19), Nevada ($3.11), Oregon ($3.04), Alaska ($2.95) and Arizona ($2.88) follow. Most state averages in the region have decreased on the week. However, California and Arizona saw increases at a penny each.

The EIA’s recent report for the week ending on Aug. 30 showed that West Coast gasoline stocks decreased by 600,000 bbl. The total level is now 28.4 million bbl, which is in line with stock levels at the end of August 2018. Prices in the region will likely decline this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 22 cents to settle at $56.52. Domestic crude prices rose last week after the EIA reported that total domestic crude inventories fell by 4.8 million bbl. At 423 million bbl, stocks are approximately 21.5 million bbl higher than were they were at the end of August 2018. Higher inventory levels have helped to keep oil cheaper this year over last, but if EIA’s report this week shows that stocks continue to shrink, prices could end the week higher again. Alternatively, if ongoing trade tensions between the U.S. and China escalate, crude prices could fall.   

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, gas prices are as much as nine cents cheaper in every state except California, (+5 cents), Florida (+4 cents), Ohio (+2 cents) and South Carolina (+1 cent).

Hurricane Dorian has been the driver for the increases in Florida and, most likely, South Carolina.

“As an east coast storm, Hurricane Dorian is not threatening major oil and gas infrastructure so its impact is localized to its path along the East Coast,” said Jeanette Casselano, AAA spokesperson. “For the rest of the country, demand, which remains high, is chipping away at supply, but not at a high enough rate to increase gas prices.”

Today’s national average is $2.57, which is a penny cheaper than last week, 14-cents less than a month ago and 26-cents cheaper than a year ago.

Quick Stats

  • The nation’s top 10 least expensive markets are: Louisiana ($2.18), Mississippi ($2.18), Alabama ($2.21), South Carolina ($2.24), Arkansas ($2.25), Tennessee ($2.26), Oklahoma ($2.26), Missouri ($2.27), Texas ($2.27) and Virginia ($2.31). 
  • The nation’s top 10 largest weekly changes are: Washington, D.C. (-10 cents), Michigan (-9 cents), Delaware (-7 cents), California (+5 cents), Maryland (-5 cents), Texas (-5 cents), Florida (+4 cents), Nebraska (-4 cents), New Jersey (-4 cents) and Iowa (-3 cents).

South and Southeast

Hurricane Dorian drove Florida’s gas price average up four-cents on the week and is starting to impact pump prices in Georgia and South Carolina by pennies. Some gas stations in the Sunshine state were reporting fuel shortages, due to motorists filling-up ahead of the storm. Those shortages will be short-lived as fuel will be re-supplied once tanker trucks can travel into any impacted areas.

The rest of the region has not been impacted by the hurricane and on the week gas prices are as much as a nickel cheaper in Texas. Most states saw prices push cheaper by two to three cents. At $2.18, Louisiana and Mississippi carry the cheapest gas price averages in the country.

The region saw a nearly 3 million bbl draw on gasoline stocks in the Energy Information Administration’s (EIA) report for the week ending Aug. 23. That drop brought total levels down to 80 million bbl, which is the lowest regional supply level since mid-April of this year. Regardless, it is a healthy supply level and provides the ability to replenish any shortages in Florida.

Great Lakes and Central States

Most states in the Great Lakes and Central region have gas price averages that are two to four cents cheaper than last week. Michigan (-9 cents) and Ohio (+2 cent) are the outliers. Illinois ($2.71) carries the most expensive average followed by Ohio ($2.59) and Michigan ($2.58). On the other side of the coin, Missouri ($2.27), Kentucky ($2.32) and Kansas ($2.32) are the cheapest in the region.

Indiana (-35 cents), Kentucky (-23 cents) and Illinois (-22 cents) lead the nation with the largest monthly decreases. Ohio (-21 cents), Wisconsin (-19 cents) and Missouri (-19 cents) round out this top 10 list.

Gasoline stocks remain stable at 51 million bbl, the healthiest supply level seen since April for the Great Lakes and Central states region. Regional refinery utilization hit 100% in the EIA’s latest report. The high refinery rate and healthy stock level are working together to push prices cheaper for most of the region, a trend that should continue into September.

Mid-Atlantic and Northeast

Four Mid-Atlantic and Northeast states land on the top 10 list for largest weekly decreases: Washington, D.C. (-10 cents), Delaware (-7 cents), Maryland (-5 cents) and New Jersey (-4 cents). All states have cheaper gas prices, with a penny being the smallest decline since last Monday.

As gas prices decline for the region, New York ($2.76) is the only state in the region to land on the top 10 most expensive state list this week. Connecticut ($2.73) ranks as the 11th highest average in the country and Pennsylvania ($2.71) is 13th. Tennessee ($2.26) has the cheapest average in the region.

Regional gasoline stocks added 1.6 million bbl for the week ending Aug. 23.  At 63.9 million bbl, stock levels are at their highest point in three months and on par with levels this time last year. This is positive news for the region in light of stock decreases seen earlier this summer due to the fire and explosion at the Philadelphia Energy Solutions (PES) refinery in Pennsylvania. With regional refinery utilization down to 66%, it’s likely that most of the increase in supply is a result of imports.

Rockies

Utah (-4 cents) had the largest decrease in the region on the week followed by Idaho (-3 cents). Meanwhile, pump prices in Idaho, Wyoming and Montana only decreased by a penny or two. At $2.54, Colorado saw no movement.

Compared to this time last year, gas prices are at least 30-cents cheaper in all states except one: Idaho (-45 cents), Utah (-37 cents), Colorado (-33 cents), Wyoming (- 30 cents) and Montana (-22 cents).

EIA data reports regional refinery utilization increased for another week, this time to 102%, though gasoline stocks dipped by about 200,000 bbl down to 7.4 million bbl. As utilization holds strong, gas prices will continue to be cheaper for motorists in the Rockies region.

West Coast

Pump prices in the West Coast region are the highest in the nation, with all states in the region landing on the top 10 most expensive list today. Hawaii ($3.65) and California ($3.62) are the most expensive markets in the country. Washington ($3.19), Nevada ($3.12), Oregon ($3.04), Alaska ($2.96) and Arizona ($2.82) follow. Most state averages in the region have decreased on the week, with Alaska (-2 cents) seeing the largest decline. However, California (+5 cents) saw the largest increase.

The EIA’s recent report for the week ending on Aug. 23 showed that West Coast gasoline stocks decreased by 600,000 bbl. The total level is now 29.02 million bbl., which is more than 700,000 bbl higher than last year at this time. The higher level could help prices stabilize if there is an increase in gas demand in the region this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by $1.61 to settle at $55.10. Crude oil prices saw some gains last week following EIA’s weekly report that showed crude oil stockpiles had decreased by 10 million bbl. However, worries about the impact of Hurricane Dorian drove crude oil prices down late last week. Closing out the week, crude oil futures fell 3% ahead of the hurricane’s landfall with fears that its impact could dampen demand. Market watchers will continue to track the progress of Hurricane Dorian as it strengthens throughout the week and batters Florida and the east coast.

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 $2.59, the national gas price average is poised to be potentially the cheapest Labor Day weekend average in three years. Today’s average is already nearly a quarter cheaper than during last year’s holiday ($2.83) and four cents cheaper than 2017’s Labor Day ($2.63).

“For Americans who bookend summer with road trips, they will find gas prices this coming weekend that are cheaper than this past Memorial Day and last year’s Labor Day holiday,” said Jeanette Casselano, AAA spokesperson. “At the start of the week, two-thirds of all states have gas price averages that are nearly a quarter cheaper than last year.”

While some states may see gas prices increase by a few pennies ahead of the holiday weekend, which isn’t atypical, any jumps will be short-term.

Quick Stats

  • The nation’s top 10 largest yearly decreases: Idaho (-43 cents), Louisiana (-38 cents), Indiana (-38 cents), Florida (-36 cents), Kentucky (-35 cents), Delaware (-35 cents), Utah (-35 cents), Mississippi (-35 cents), Alaska (-34 cents) and Oklahoma (-34 cents).
  • The nation’s top 10 most expensive markets: Hawaii ($3.64), California ($3.57), Washington ($3.21), Nevada ($3.13), Oregon ($3.05), Alaska ($3.00), Utah ($2.85), Idaho ($2.82), Arizona ($2.81) and New York ($2.79).

Mid-Atlantic and Northeast

Gas prices are cheaper across the Mid-Atlantic and Northeast states by as much as a nickel, but that large drop only happened for one state: North Carolina (-5 cents). New Jersey (-4 cents) saw the second largest decline followed by these four states with a three-cent weekly decrease: Virginia, Pennsylvania, Tennessee and Maryland. But the real savings for motorists in region is compared to this time last year – gas prices are at least 19 cents cheaper. Heading into Labor Day weekend last year, state gas price averages ranged from $2.59 – $3.03 whereas this year they are $2.29 – $2.79.

Despite a 1% dip in regional refinery utilization, gasoline stocks built by 781,000 bbl, per the Energy Information Administration (EIA). This is the fourth straight week that utilization fell, yet three straight weeks of stock increases. As previously reported, imports are easing concerns related to the decline in utilization due to the pending closure of a regional refinery. Stocks sit at a nearly 1 million bbl deficit compared to this time last year.

South and Southeast

Gas prices in the South and Southeast region have dipped to or below the $2.25/gallon mark for some states, which also tout the cheapest prices in the country today: Mississippi ($2.20), Louisiana ($2.20), Alabama ($2.23) and South Carolina ($2.23). More states in the region are likely to see averages this low in coming weeks. In fact, AAA expects by year-end that the region will again see $2/gallon retail prices. Currently, New Mexico ($2.48) and Georgia ($2.41) carry the most expensive averages in the region. 

On the week, all states in the region have gas prices that are cheaper by two cents to a nickel. Florida (-5 cents) saw the largest weekly decline.

The EIA reports that regional gasoline stocks drew by a little more than 1 million bbl. However, overall levels sit at a very healthy 83.2 million bbl and therefore gas prices are poised to continue to push cheaper.

Great Lakes and Central States

While Indiana (-10 cents) had the largest and only double-digit pump price decrease on the week in the region and the country, the majority of Great Lakes and Central states, saw pump prices push cheaper by as much as three cents. At $2.70, Michigan’s average increased two cents on the week and was one of only two states in the country to see an increase.

All states in the region are averaging a year-over-year pump savings of 20 cents or more except Illinois (-13 cents), which is at the lowest end of the price drop spectrum in the region.

With a 1 million bbl build, gasoline stocks increased for a third week and sit at their highest level since early April of this year, according to EIA data. Regional refinery utilization held strong at 99%, indicating that the region should expect cheaper gas prices next month with one stipulation being any refinery maintenance planned for this fall.

Rockies

On the week, gas prices declined 1 cent – 3 cents in the region. Colorado ($2.54) has the cheapest gas price average of all five states in the Rockies region while Utah ($2.85) and Idaho ($2.82) carry the most expensive. The latter two states rank as the 7th and 8th most expensive states in the country, however, they still land on the top 10 list for largest yearly changes, with differences of 43 and 35 cents less expensive, respectively.

Regional refinery utilization jumped back up to 100% in EIA’s data for the week ending Aug 16. Alongside the increase in utilization, stocks built by 200,000 to total 7.6 million bbl, the highest level since before Memorial Day. And with the end of summer tourism, stocks are likely to increase and push prices cheaper.

West Coast

Motorists in the West Coast region are paying the highest pump prices in the nation, with all states in the region landing on the top 10 most expensive list. Hawaii ($3.64) and California ($3.57) are the most expensive markets in the country. Other states in the region are seeing the following prices: Washington ($3.21), Nevada ($3.13), Oregon ($3.05), Alaska ($3.00) and Arizona ($2.81). State averages in the region have decreased on the week by as much as three cents, except in Arizona, which saw a three-cent increase since last Monday and is one of only two states in the country to see pump prices push more expensive.

The EIA’s report for the week ending on August 16 showed that West Coast gasoline stocks decreased slightly from 30.2 million bbl to 29.6 million bbl. Additionally, the report showed regional refinery utilization rose to 96.6% giving an indication of future production capability. If there is a supply disruption or increase in demand this week, pump prices in the region could increase moderately because of tighter stock levels.  

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by $1.15 to settle at $54.17. Crude prices strengthened after the EIA revealed that total domestic crude inventories fell by 2.7 million bbl. Then on Friday, crude oil prices took a downward turn as a result of continued trade tensions between the U.S. and China. Reuters reported that oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against $75 billion worth of U.S. goods. In response, President Trump tweeted that he would raise tariffs on $250 billion in Chinese goods from 25 to 30 percent on October 1. He also added that a tariff announced earlier this year and scheduled to go into effect on September 1 would now be raised to 15 percent. Market watchers will keep a close eye on U.S.-China trade talks and the impact increasing tariff costs could have on global crude oil demand. If the trade tension between the countries continues, crude prices will likely decline further.

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.

Cheap Crude Oil Paves Way for Significant Savings at the Pump

August 22nd, 2019 by AAA Public Affairs

AAA Forecasts National Gas Price Average to Land at $2.40 or Lower This Fall

WASHINGTON (August 22, 2019) – When filling-up at the pump this fall, the majority of U.S. motorists will find savings of potentially more than 25-cents/gallon compared to this summer. The national gas price average, which is already 15-cents cheaper than just five weeks ago, is poised to continue pushing less expensive due to several factors, including less expensive crude oil prices, the drop-off in gasoline demand after Labor Day and the move to winter-blend gasoline. AAA forecasts the national average to drop to $2.40 or lower this fall and offers motorists easy tips to maintain fuel efficiency throughout the year.

Additional Resources

“AAA predicts that fall gasoline prices will be significantly less expensive than this summer with motorists finding savings in every market across the country,” said Jeanette Casselano, AAA spokesperson. “Many factors are driving this decrease, but the low price of crude oil is chief among them.”

AAA forecasts crude prices to range between $50 and $60 per barrel this fall. That is a considerable drop from last fall when prices ranged between $60 and $75. Why so cheap? Current total domestic crude inventories sit at 438.9 million bbl, which is 31.5 million bbl higher than last year at this time. The continued glut of oil encouraged the Organization of the Petroleum Exporting Countries (OPEC) and its partners to extend their 1.2 million b/d production reduction agreement through the end of the year. However, so far, reduced supply from OPEC and its partners has not led to a sustained higher price for crude.

As always, hurricane season has the potential to cause declining gas prices to shoot back up. This month, the National Oceanic and Atmospheric Administration predicted that 2019’s Atlantic hurricane season is expected to be above normal, with 10 to 17 named storms, including five to nine hurricanes. The mere threat of a hurricane making landfall can shutter domestic crude production, leading to spikes in crude and gasoline prices. In 2017, Hurricane Harvey caused the national gas price average to jump 30-cents in a matter of days.

Fall Regional Outlooks

  • West Coast: This region is consistently home to the most expensive markets in the country, even though the crude refinery utilization rate in the region has grown to nearly 97 percent this summer. Growing stocks have helped to push prices lower across the region. Gas is $3.01 or more in all seven states in the region except Arizona. As fall brings lower demand for gasoline, AAA expects the West Coast to see gas prices drop, in light of higher stock levels, during the months ahead.
  • Great Lakes and Central States: Gasoline stocks and regional refinery utilization have seen mostly weekly increases, with the exception of a few, throughout the summer. Moving into the fall, refinery utilization will likely slow as demand hits a post-summer slump and refineries make the switch to winter-blend gasoline production and undergo planned maintenance. Prices should push cheaper, but that won’t stop the typically volatile region from being susceptible to sudden price shocks
  • Mid-Atlantic and Northeast: Total gas stocks in the region sit at 61 million bbl, which is 3 million bbl less than last year this time. Part of the year-over-year deficit stems from the pending closure of Philadelphia Energy Solutions (PES), the largest refinery on the East Coast. This would usually lead to a spike in gas prices. However, gasoline imports are easing supply concerns and keeping retail gasoline prices moving lower. Though any further supply disruptions could cause prices in the region to spike temporarily.
  • South and Southeast: This summer, the region has averaged a gasoline stock level of nearly 84 million bbl, with healthy regional refinery utilization rates, which have helped keep gas prices low. Motorists in the South and Southeast can expect to find savings at the pump this fall, potentially even under $2/gallon by year-end, barring any major hurricanes.
  • Rockies: Typically gas prices skew their highest for the Rockies region during summer tourism season. That was no different this year. However, prices were significantly cheaper than summer 2018 – Utah and Idaho’s averages priced under $3/gallon for all of July, compared to a high of $3.22 in 2018. As the tourist season winds down and demand slows, gas prices may see some fluctuation, but overall, motorists can expect prices to remain steady as gasoline stocks sit at their highest level – 7.5 million bbl – recorded by the EIA for the month of August.

Boost your Vehicle’s Fuel Efficiency

In addition to cheaper gas prices, there are other ways to save at the pump and boost your vehicle’s fuel efficiency this fall.

According to the AAA Foundation for Traffic Safety, Americans drive an average 11,498 miles per year, and annual per-vehicle gasoline use totals approximately 462 gallons. Poorly maintained vehicles are less efficient and use more fuel. To maintain fuel efficiency for your car, AAA recommends checking the owner’s manual for the recommended maintenance schedule, and keep the following in mind:

  • Perform required maintenance as specified. Keeping tires properly inflated, moving components adequately lubricated, and ignition and emission systems in good operating condition will help ensure maximum fuel efficiency and extend the life of your vehicle.
  • Change engine oil at the intervals indicated by the in-car maintenance reminder system or factory schedule. Use an “energy-conserving” oil that meets the vehicle manufacturer’s specifications.
  • Keep tires inflated at the proper pressure. Use the figures on the tire information decal on the driver’s door jamb — not the one molded into the tire’s sidewall. Under-inflated tires reduce fuel economy and can be a safety hazard.
  • Check the engine air filter at every oil change. A dirty filter won’t affect fuel economy on a modern fuel-injected car, but it will reduce engine performance.
  • Engine spark plugs must be in good condition. Some types last for 100,000 miles, but others need to be replaced more often.

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.

Demand at All-Time High, Slowing Pump Price Decreases

August 19th, 2019 by AAA Public Affairs

Summer may be ending, but gasoline demand is soaring to new heights. In its latest reading (for the week ending Aug. 9), the Energy Information Administration (EIA) recorded demand at 9.93 million b/d, the highest since the agency began recording data in 1991. As demand jumped, gasoline stocks fell by 1.4 million bbl and pump prices slowed their decline on the week.

“Pump prices continue to trend cheaper for most motorists across the country, though the rate at which they are declining slowed in the last week with a handful of states only seeing a nickel decline at the most,” said Jeanette Casselano, AAA spokesperson. “Demand recorded at a surprising all-time high, but it is expected to drop in the coming weeks as summer comes to an unofficial end.”

Today’s national average is $2.61, which is three cents cheaper than last week, 17-cents less than a month ago and 22-cents cheaper than a year ago. Nearly half of all gas stations in the country are selling gas for $2.50 or less.

Quick Stats

  • The nation’s top 10 largest weekly decreases are: North Carolina (-5 cents), Maryland (-5 cents), Georgia (-5 cents), Washington, D.C. (-5 cents), Texas (-5 cents), Missouri (-5 cents), South Carolina (-5 cents), Tennessee (-5 cents), New Jersey (-5 cents) and Virginia (-5 cents).
  • The nation’s top 10 least expensive markets are: Louisiana ($2.23), Mississippi ($2.24), South Carolina ($2.26), Alabama ($2.27), Arkansas ($2.29), Oklahoma ($2.30), Tennessee ($2.32), Texas ($2.33), Missouri ($2.34) and Kansas ($2.36).

South and Southeast

States in the South and Southeast carry among the cheapest gas prices in the country and some saw large declines on the week. Three state averages decreased by a nickel and land on the top10 list of states with the largest weekly decreases in the country: Georgia ($2.46), Texas ($2.33) and South Carolina ($2.26).

Motorists in the region are enjoying savings at the pump compared to last year at this time. Ten South and Southeast states have gas price averages that are a quarter or more less expensive: Louisiana (-37 cents), Florida (-35 cents), Mississippi (-31 cents), Oklahoma (-30 cents), Arkansas (-28 cents), South Carolina (-27 cents), Alabama (-27 cents), New Mexico (-27 cents), Texas (-27 cents) and Georgia (-26 cents).

The region’s refinery utilization rate (96%) and gasoline stock levels (84 million bbl) both held steady from the previous week according to the latest EIA data. Stock levels have been mostly increasing since mid-July and sit at a 4.2 million bbl surplus compared to this time last year. This likely means continued pump price decreases heading into September.

Great Lakes and Central States

The majority of motorists in the Great Lakes and Central states saw gas prices decrease on the week. However, Michigan (+6 cents) and Ohio (+2 cents) are the region’s and country’s outliers, being the only two states to see increases. This follows significant double-digit decreases each state saw the week prior: Ohio (-19 cents) and Michigan (-12 cents). However, this is not unordinary behavior in a region with high volatility.

All states in the region have gas price averages that are double-digits cheaper than a month ago. At a quarter or more cheaper, Illinois (-32 cents), Indiana (-26 cents) and Kentucky (-25 cents) tout the largest monthly decreases in the country.

Gasoline stocks remain at a healthy 50.1 million bbl. In the week ahead, gas prices may see little movement at the pump if gas stocks continue to hold steady. Regional refinery utilization remains strong with the EIA reporting a rate of 99% in their latest report. 

Mid-Atlantic and Northeast

In the Mid-Atlantic and Northeast region, gas prices are as much as a nickel cheaper than last week. North Carolina ($2.43), Maryland ($2.53), Washington, D.C. ($2.77), Tennessee ($2.32), New Jersey ($2.68) and Virginia ($2.37) rank among the top 10 states with the largest weekly decreases in the county and all saw gas prices drop by a nickel.

At the start of the workweek, state gas price averages in the region range between $2.81 and $2.32.

Regional gasoline stocks saw a nearly half a million bbl build despite refinery utilization declining for a third straight week, down 4% to 70%, per EIA data. Gas prices are decreasing among stable stocks and utilization thanks to imports backfilling supply since the largest refinery on the East Coast will be shutting down in the near future.

Rockies

Gas prices in the Rockies saw modest movement  – three cents or less declines – at the pump since last Monday: Idaho (-3 cents), Montana (-3 cent), Utah (-3 cents), Colorado (-2 cents) and Wyoming (-2 cents).

Compared to a month ago, gas prices are cheaper in the region, but not as significantly cheaper as much of the country is seeing. With nine-cent monthly differences, Idaho, Wyoming, Montana and Utah rank among the top 10 states with the smallest monthly decrease.

EIA data reports regional refinery utilization dropped 5%. However, as the region was carrying a rate more than 100% in the past few weeks, this move only drops the current rate to 98.7%. Stocks dipped slightly (45,000 bbl) to now measure at 7.4 million bbl. Thanks to a summer of strong refinery runs, stocks sit close to a 1 million bbl surplus.

West Coast

Pump prices in the West Coast region are the highest in the nation, with most states in the region landing on the top 10 most expensive list today. Hawaii ($3.64) and California ($3.59) are the most expensive markets in the country. Washington ($3.23), Nevada ($3.16), Oregon ($3.08) and Alaska ($3.03) follow. Arizona ($2.78) is the only state in the region to not be included in the list. Most state averages in the region have decreased on the week, with Nevada (-4 cents) seeing the largest decline.

The EIA’s recent report for the week ending on August 9 showed that West Coast gasoline stocks sit at 30.2 million bbl, falling by 1.5 million bbl from the previous week. The current level is approximately 100,000 bbl lower than last year at this time, which could cause prices to increase moderately if there is any disruption in supply or an increase in gas demand in the region this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 40 cents to settle at $54.87. Crude prices rose at the end of last week after sustaining heavy losses for two days. The losses came as a result of continued market worries about crude demand slumping this fall as a result of the ongoing trade dispute between the United States and China, the world’s two largest oil consuming countries. If the trade dispute continues this week, crude prices may see further declines.

Additionally, last week OPEC trimmed its global oil demand forecast, citing a slowing economy. OPEC now calculates that this year’s crude demand growth will hit 1.1 million b/d on a year-over-year basis. The new rate reflects a slight dip of 40,000 b/d due to a slowdown in global demand trends in the first half of 2019.

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.

Domestic Gasoline Stocks Soar, Push Down Gas Prices

August 12th, 2019 by AAA Public Affairs

The national gas price average, $2.64, represents a seven-cent drop on the week as domestic gasoline stocks built by a surprising 4.4 million bbl, according to the Energy Information Administration’s (EIA) latest data. Contributing to the build was at least 1.2 million b/d of imports at U.S. ports. With the large bump, stocks now sit 235 million bbl – a U.S. stock level not seen in nearly five months (end of March).

 “On the week, nearly half of all states saw gas price averages decrease by at least a nickel,” said Jeanette Casselano, AAA spokesperson. “While gasoline demand increased week-over-week, it wasn’t enough to stay on pace with the huge jump in gasoline stocks. Therefore, pump prices continue to decline across the country.”

Today’s national gas price average is 13-cents less than a month ago and 21-cents cheaper than a year ago. 

Quick Stats

  • The nation’s top 10 largest weekly decreases are: Ohio (-19 cents), Indiana (-17 cents), Illinois (-12 cents), Michigan (-12 cents), Kentucky (-10 cents), Florida (-7 cents), Oklahoma (-7 cents), Louisiana (-6 cents), Missouri (-6 cents) and Georgia (-6 cents).
  • The nation’s top 10 least expensive markets are: Louisiana ($2.27), Mississippi ($2.28), South Carolina ($2.31), Alabama ($2.31), Arkansas ($2.32), Oklahoma ($2.34), Tennessee ($2.37), Texas ($2.38), Missouri ($2.39) and Kansas ($2.41).

Great Lakes and Central States

Motorists in five Great Lakes and Central states saw significant – double-digit – declines at the pump this week: Ohio (-19 cents), Indiana (-17 cents), Illinois (-12 cents), Michigan (-12 cents) and Kentucky (-10 cents). These states not only lead the top 10 list for weekly declines in the country, but also lead the largest monthly decline with savings as much as a quarter since this time in July: Illinois (-33 cents), Michigan (-32 cents), Ohio (-29 cents), Indiana (-30 cents) and Kentucky (-24 cents).

While all states in the region saw declines at the pump, they were not all significant. South Dakota saw the smallest decrease of just a penny. Gas prices in the region range from $2.79 in Illinois to $2.39 in Missouri.

Gas prices declined as gasoline stocks in the region jumped by 1.1 million bbl to bring total levels to 50 million bbl. The increase in stocks was supported by a 5% increase in regional refinery utilization, which was reported at 100% by the EIA. The Great Lakes and Central states are well-known for weekly volatility. While this week is starting with significant savings for much of the region, there is the potential for this coming week to bring increases.

South and Southeast

State gas price averages are 4 to 7 cents cheaper on the week across the South and Southeast region. Florida (-7 cents), Oklahoma (-7 cents), Louisiana (-6 cents) and Georgia (-6 cents) land on the top 10 list of largest weekly changes. Though, Texas and South Carolina also saw their state average decline six-cents on the week.

The latest weekly declines continue to position the South and Southeast as the region with the cheapest gas, with 7 of the 10 least expensive averages in the country: Louisiana ($2.27), Mississippi ($2.28), South Carolina ($2.31), Alabama ($2.31), Arkansas ($2.32), Oklahoma ($2.34) and Texas ($2.38).

The region saw a nearly 1 million bbl increase in gasoline stocks on the week and refinery utilization jumped 3.2%. At 84.7 million bbl, regional stocks now sit at their highest level since the end of May. Should stock levels and utilization remain at these high levels, motorists in the region can only expect to see gas prices continue to decline.

Mid-Atlantic and Northeast

New York ($2.84), Connecticut ($2.83), Washington, D.C. ($2.82) and Pennsylvania ($2.82) rank as the 9th – 12th most expensive gas price averages in the country. All Mid-Atlantic and Northeast states saw gas price averages decline on the week. However, pump price drops have been moderate (an average of four-cents) in comparison to other regions with double-digit weekly changes.

Regional gas prices are likely to continue decreasing, considering gasoline stocks rose by nearly 2 million bbl on the week. According to EIA reports, this was the largest build of any region. Much of the increase can be attributed to imports as regional refinery utilization saw a drop (2%) on the week.

Rockies

Gas prices are trending cheaper or stable after the prior week brought increases for a few states in the Rockies region. Colorado (-5 cents) saw the largest weekly decline, followed by Idaho and Montana – each with a two 2 cent drop – and Wyoming (-1 cent). Utah’s average remained stable at $2.91.

Year-over-year, most motorists in the region are seeing savings of at least 20 cents/gallon: Idaho (-34 cents), Colorado (-23 cents), Wyoming (-22 cents) and Utah (-21 cents). In Montana, gas prices are 16-cents cheaper compared to this time last year.

In the Rockies, regional refinery utilization sits at 103%. While this is the highest utilization in the country, the region carries the smallest stock level: 7.5 million bbl, according to EIA data. Motorists are likely to see gas prices continue to trend cheaper through August.

West Coast

Motorists in the West Coast region are paying the highest pump prices in the nation, with most states in the region landing on the top 10 most expensive list today. Hawaii ($3.64) and California ($3.62) are the most expensive markets in the country. Washington ($3.25), Nevada ($3.20), Oregon ($3.10) and Alaska ($3.06) follow. Arizona ($2.77) is the only state in the region to fall off the list. Most state averages in the region have decreased on the week, with California (-5 cents) seeing the largest decline.

The EIA’s recent report for the week ending on August 2 showed that West Coast gasoline stocks sit at 31.7 million bbl, growing by approximately 500,000 bbl from the previous week. The current level is nearly 1.3 million bbl higher than last year at this time, which could help prices stabilize if there is any disruption in supply or an increase in gas demand in the region this week.

 Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by a $1.96 to settle at $54.50. Crude prices increased last week after reports emerged that OPEC is considering additional crude production cuts. In July, the cartel announced that it and its partners would extend the 1.2 million b/d crude production reduction agreement for an additional nine months. More details about the potential production cuts will likely be discussed at OPEC’s next meeting on December 5-6 in Vienna. Crude prices could increase this week amid further indications that global crude supply will tighten this fall.

The increase in crude prices last week occurred despite the International Energy Agency (IEA) revealing that global oil demand from May 2018 to January 2019 grew at its slowest rate since 2008. As a result, IEA reduced its global crude demand growth forecasts for 2019 and 2020 to 1.1 million and 1.3 million bpd respectively.

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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