Posts Tagged ‘gas prices’

Gasoline Demand Drops to Lowest Level in Four Months

October 26th, 2020 by jcasselano

Gasoline demand has dropped significantly since the beginning of the month, down from 8.8 million b/d to 8.2 million b/d, according to the latest Energy Information Administration (EIA) report. This latest demand measurement is the lowest since mid-June. While the drop isn’t out of the ordinary for this time of year, people tend to drive less in the fall, it is a staggering 14% less than last October. On the week, gasoline stocks increased to 227 million bbl, putting total supplies at a 4 million bbl surplus compared to this time last year.

“The U.S. has a very healthy level of gasoline stocks due to lower demand and that is keeping gas prices low,” said Jeanette Casselano McGee, AAA spokesperson. “The majority of states have cheaper gas prices compared to last month, many paying 3 to 8 cents less. That downward trend at the pump is likely to continue.”

This summer brought an increase in demand compared to spring, but with coronavirus cases increasing, activity at the pump is declining – both fill-ups and prices. Today’s national average is $2.16, which is the same price as last week, 2 cents cheaper than last month and 44 cents less than last year. On the week, only five states saw gas prices increase: Ohio (+7 cents), Kentucky (+6 cents), Michigan (+5 cents), Indiana (+1 cent) and Illinois (+1 cent). Of the states with cheaper weekly prices, 20 averages are 2 to 5 cents less than last Monday.

It is a little more than a month until the end of the Atlantic hurricane season, which is proving to be one of the most active on record. A threat to the Gulf of Mexico – Tropical Storm Zeta – is forecasted to become a hurricane by Wednesday. The National Hurricane Center is warning the storm could bring storm surge, rainfall and high winds from central Louisiana to the western Florida Panhandle later this week. It’s most likely that Zeta, similar to other tropical storms and hurricanes from earlier this season, will not have an impact on gas prices nationally due to the high level of gasoline stocks in the United States.

Quick Stats

  • The nation’s top 10 largest weekly changes: Ohio (+7 cents), Kentucky (+6 cents), Michigan (+5 cents), Florida (-5 cents), West Virginia (-4 cents), Oklahoma (-3 cents), Minnesota (-3 cents), North Carolina (-3 cents), Delaware (-3 cents) and South Carolina (-3 cents).   
  • The nation’s top 10 least expensive markets: Missouri ($1.82), Mississippi ($1.83), Oklahoma ($1.84), Texas ($1.85), Arkansas ($1.85), Louisiana ($1.88), South Carolina ($1.88), Alabama ($1.89), Tennessee ($1.91) and Kansas ($1.92).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 79 cents to settle at $39.85. Domestic crude prices decreased in light of market concern about increasing coronavirus infections worldwide, which could lower crude demand. The decrease in price occurred despite EIA’s weekly report showing that total domestic crude inventories dropped by 1 million bbl to 488.1 million bbl. If demand concerns continue this week, crude prices could decrease 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

Gasoline demand, according to the Energy Information Administration (EIA), back tracked for the week ending Oct. 9, decreasing from 8.90 million b/d to 8.58 million b/d. Lower demand, even as total domestic stocks decreased by 1.6 million bbl to 225.1 million bbl and imports fell to their lowest rate since Sept. 18, has contributed to pump price decreases for the majority of the country.

“Today’s national average is $2.16, which is two cents less than a week and month ago and 49 cents cheaper than last year,” said Jeanette Casselano McGee, AAA spokesperson. “Decreases in U.S. gasoline demand, supply and imports pushed the national and 44 state gas price averages cheaper on the week.”

On the week, a few Mid-West states saw much larger decreases: Indiana (-6 cents), Michigan (-6 cents), Ohio (-5 cents) and Kentucky (-5 cents), which could be attributed to an increase in regional stock. A penny gas price increase was seen in these states since last Monday: Utah ($2.40), New Jersey ($2.24), Alaska ($2.50), Georgia ($2.00), South Dakota ($2.10) and Hawaii ($3.24).

 Quick Stats

  • The nation’s top 10 largest weekly decreases: Indiana (-6 cents), Washington, D.C. (-6 cents), Michigan (-6 cents), Ohio (-5 cents), Kentucky (-5 cents), Florida (-4 cents), Wisconsin (-3 cents), West Virginia (-3 cents), South Carolina (-3 cents) and North Carolina (-3 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.84), Missouri ($1.84), Texas ($1.85), Oklahoma ($1.87), Arkansas ($1.87), Louisiana ($1.89), Alabama ($1.90), South Carolina ($1.91), Tennessee ($1.93) and Kansas ($1.94).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by eight cents to settle at $40.88. Domestic crude prices decreased at the end of last week due to market concern regarding an increase in coronavirus infections worldwide. As more social restrictions are introduced, crude demand will likely decline. The price drop occurred despite EIA’s new weekly report showing that total domestic crude inventories declined by 3.8 million bbl to 489.1 million bbl. For this week, ongoing demand concerns could cause prices to decrease 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.

Over the weekend Hurricane Delta made landfall in southwestern Louisiana as a category 2 hurricane. While the storm caused some disruptions, refineries are reporting operations have resumed. The Colonial Pipeline Line 1, the main gas line, was down temporarily over the weekend due to loss of power, which has since been restored as well as service. Line 2, the distillates line, is currently shutdown without power. While the Bureau of Safety and Environmental Enforcement reports that approximately 91% of oil production in the Gulf of Mexico is currently shut-in, as of this morning, inspections are underway and production is expected to resume this week.

“In a typical year, a hurricane season like we’ve experienced this year would have caused gas prices to spike, but 2020 is not a typical year,” said Jeanette Casselano McGee, AAA spokesperson. “Low U.S. gasoline demand has helped contain any impact to gas prices locally and regionally throughout this hurricane season.”

On the week, the national gas price average held steady at $2.18 despite a slight jump in demand. At 8.8 million b/d, gasoline demand is just 6% below levels last year at this time. However, the increase isn’t substantial enough to impact supply levels or pump prices. The Energy Information Administration’s (EIA) weekly report measures gasoline supply at 226.7 million bbl. That is a decrease of 1.7 million bbl from the week prior, though the drop is likely attributed to high export numbers.

“The vast majority of motorists are seeing stability at the pump, even despite Hurricane Delta. On the week 45 state gas price averages only fluctuated by one or two pennies, if at all. Demand just is not strong enough to outpace supply, which means drivers are continuing to benefit from cheaper prices at the pump,” added McGee.

Today, motorists can find gas for $2.25 or cheaper at 72% of gas stations, compared to 12% last October. The national average is a penny less than last month and 45 cents cheaper than last year.

Quick Stats

  • The nation’s top 10 largest weekly changes: Delaware (+9 cents), Washington, D.C. (+6 cents), Maryland (+6 cents), Indiana (+5 cents), South Carolina (+3 cents), Ohio (-3 cents), Wisconsin (-3 cents), Illinois (-3 cents), Florida (-2 cents) and Idaho (-2 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.85), Texas ($1.85), Missouri ($1.87), Oklahoma ($1.87), Arkansas ($1.88), Louisiana ($1.90), Alabama ($1.90), South Carolina ($1.94), Tennessee ($1.94) and Kansas ($1.95).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 59 cents to settle at $40.60. Crude prices dropped due to market concern about increasing coronavirus infections worldwide, which could lower crude demand. The drop in prices occurred alongside the EIA weekly report revealing that total domestic crude inventories increased by 500,000 bbl to 492.9 million bbl. For this week, crude prices could decline further if demand concerns continue to worry the market.

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 $2.18, the national gas price average is at the cheapest start to the month of October since 2016. That average is the same as a week ago, four cents cheaper than the start of this past September and nearly 50 cents cheaper than last year. The national average held on the week as demand was mostly stable at 8.5 million b/d despite gasoline stocks increasing by 700,000 bbl.

“Demand is likely to see some declines in the weeks ahead as drivers traditionally take fewer road trips in the fall,” said Jeanette Casselano McGee, AAA spokesperson. “That will mean gas prices are likely to push cheaper throughout the month.”

On the week, 41 state gas price averages fluctuated by no more than two cents. Of those, 38 states only saw a penny increase or decrease. A handful of states saw more substantial gas price increases including Florida (+9 cents), Delaware (+6 cents), New Jersey (+6 cents), Washington, D.C. (+5 cents), West Virginia (+4 cents) and Maryland (+3 cents).

Quick Stats

  •  The nation’s top 10 largest weekly changes: Florida (+9 cents), Delaware (+6 cents), New Jersey (+6 cents), Washington, D.C. (+5 cents), Michigan (-5 cents), West Virginia (+4 cents), Maryland (+3 cents), Kentucky (-3 cents), Idaho (-3 cents) and Indiana (-3 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.84), Texas ($1.85), Arkansas ($1.87), Oklahoma ($1.87), Missouri ($1.87), Louisiana ($1.88), Alabama ($1.89), South Carolina ($1.91), Tennessee ($1.93) and Kansas ($1.95).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by $1.67 to settle at $37.05. Crude prices dropped dramatically due to market concern about increasing coronavirus infections worldwide, which could lower crude demand. The drop in prices occurred despite the Energy Information Administration’s weekly report revealing that total domestic crude inventories decreased by 2 million bbl to 492.4 million bbl. For this week, crude prices could decline further if demand concerns continue to worry the market.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

National Average Holds Steady as Demand Grows Slightly

September 28th, 2020 by jcasselano

The latest Energy Information Administration (EIA) report measures demand at 8.52 million b/d, which is a slight uptick from the previous week’s 8.48 million b/d. However, the small increase is still 850,000 b/d lower than last year at this time.

“Low demand, even as gasoline stocks decline, has helped pump prices decline or hold steady on the week,” said Jeanette Casselano, AAA spokesperson. “That is likely to continue into the fall as the season sees fewer road trips, especially amid the pandemic.”

Today’s national gas price average is $2.18, which is the same price as last week, five cents less than a month ago, but 47 cents cheaper than a year ago. On the week, most states saw gas prices decrease or moderate fluctuations by a penny or two. A continued drop in demand will likely lead to pump prices continuing to decrease.

Quick Stats

  •  The nation’s top 10 largest weekly changes: Michigan (+10 cents), Ohio (+9 cents), Kentucky (+8 cents), Indiana (+6 cents), New Mexico (+5 cents), South Carolina (+3 cents), North Carolina (+3 cents), Florida (-3 cents), Illinois (+2 cents) and Idaho (+2 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.83), Texas ($1.85), Louisiana ($1.87), Missouri ($1.87), Arkansas ($1.87), Oklahoma ($1.89), Alabama ($1.89), Tennessee ($1.92), South Carolina ($1.93) and Kansas ($1.96).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by six cents to settle at $40.25. Domestic crude prices declined due to increased market fears as coronavirus infections increase worldwide, which could impact crude demand. Before market fears emerged, there was some market optimism that domestic demand could be starting to stabilize after EIA’s latest weekly report revealed that total domestic crude inventories decreased by 1.6 million bbl to 494.4 million bbl. Decreasing stocks could signal that supply and demand are rebalancing, while crude production decreased by 200,000 b/d to 10.7 million b/d. For this week, crude prices could decline further if demand concerns continue to worry the market.

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.

Low Demand Continues to Pull National Average Lower

September 21st, 2020 by EEdmonds

The latest Energy Information Administration (EIA) report measures demand at 8.48 million b/d, which is a slight uptick from the previous week’s 8.39 million b/d. However, the small increase — likely due to holiday road trips — is still 461,000 b/d lower than last year at this time. Low demand, even as total domestic stocks of gasoline declined to 231.5 million bbl, has helped keep pump prices low.

Today’s national gas price average is $2.18, which is one cent less than last week, the same price as a month ago, but 48 cents cheaper than mid-September last year. On the week, all states saw gas prices decrease or remain stable at the pump. The majority of state averages have pushed cheaper by a penny or two since last Monday. With the nation entering the fall driving season, which typically sees fewer road trips, a continued drop in demand will likely lead to pump prices continuing to decrease.

Additionally, the National Hurricane Center is currently tracking Tropical Storm Beta, which is expected to produce severe flooding and heavy rain in coastal Texas and Louisiana later today. The expected damage to infrastructure will likely hinder ongoing recovery efforts in the region due to other recent storms and hurricanes, which have shuttered total U.S. crude refining capacity by 8.7%. The amount of shuttered oil production in the Gulf of Mexico now stands at 179,237 b/d (just under 10% of total offshore output), according to the federal Bureau of Safety and Environmental Enforcement. Any crude or pump price impacts will likely be contained to the region and not have a national impact.

Quick Stats

  • The nation’s top 10 largest weekly decreases: Delaware (-5 cents), Florida (-4 cents), Maryland (-3 cents), West Virginia (-3 cents), Utah (-3 cents), Colorado (-2 cents), South Carolina (-2 cents), Georgia (-2 cents), New Jersey (-2 cents) and North Carolina (-2 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.84), Texas ($1.85), Arkansas ($1.87), Oklahoma ($1.88), Missouri ($1.88), Louisiana ($1.88), South Carolina ($1.90), Alabama ($1.90), Tennessee ($1.93) and Kentucky ($1.96).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 14 cents to settle at $41.11. Domestic crude prices increased last week after EIA’s weekly report revealed that total domestic crude inventories decreased by 4.4 million bbl to 496 million bbl. Decreasing stocks could signal that supply and demand are rebalancing, even while production grew by 900,000 b/d last week to 10.9 million b/d. For this week, crude prices could increase again if EIA’s next weekly report shows another decrease in total inventories.

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 latest Energy Information Administration (EIA) report measures gasoline demand at 8.3 million b/d, which is the lowest level since mid-June. As demand dropped for a second week, so did gasoline supply levels – down nearly 3 million bbl to 231 million bbl. While consistently decreasing week-over-week, supplies also sit at a 3 million bbl year-over-year surplus.

“Typically lower supply levels translate into higher pump prices. However, even with consistent declines in gasoline stocks, that’s just not the case right now,” said Jeanette Casselano, AAA spokesperson. “Despite the steady supply dip, continued low levels of demand helped push the national gas price cheaper on the week.”

Today’s national gas price average is $2.19, which is three cents less than last week, two cents more than a month ago, but 37 cents cheaper than mid-September last year. On the week, all states saw gas prices decrease or stabilize at the pump. States with the largest declines are paying a nickel to a dime less, but the majority of state averages pushed cheaper by a few pennies since last Monday.

Mid-September is typically a point in the year that ushers in cheaper gas prices due to the switchover at gas stations from summer-blend to winter-blend, which is cheaper to produce. The difference between the two blends comes down to Reid Vapor Pressure (RVP), which is a measure of how easily the fuel evaporates at a given temperature. The higher – or more volatile – the RVP, the more able it is to evaporate at low temperatures. Winter-blend has a higher RVP which allows the fuel to evaporate at low temperatures for the engine to operate properly, especially when the engine is cold. If the RVP is too low on a frigid day, the vehicle will be hard to start and once started, will run rough.

“Motorists will see some cost savings at the pump with the switchover to winter-blend, but the price difference will be less than other years given how cheap prices have been this year already,” added Casselano. “However, hurricanes can always change any forecast for savings.”

The National Hurricane Center is currently tracking a number of tropical storms and depressions. Tropical Storm Sally is expected to produce life-threatening storm surge and hurricane-force winds for the northern Gulf Coast starting later today. Sally has already forced at least one refinery shutdown in Louisiana at Phillips 66. Others are watching the storm to determine any operational decisions (see more details in Oil Market Dynamics section). Any pump price impacts will likely be contained to the region and not have a national impact.

 

Quick Stats

  • The nation’s top 10 largest weekly decreases: Ohio (-10 cents), Kentucky (-7 cents), Indiana (-6 cents), Michigan (-5 cents), North Carolina (-5 cents), South Carolina (-5 cents), Wisconsin (-4 cents), Washington, D.C. (-4 cents), Tennessee (-4 cents) and Illinois (-4 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.86), Texas ($1.87), Arkansas ($1.90), Louisiana ($1.90), Missouri ($1.90), Oklahoma ($1.90), Alabama ($1.91), South Carolina ($1.93), Tennessee ($1.94) and Kentucky ($1.96).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by three cents to settle at $37.33. Although crude prices made a small gain at the end of the week, the price of crude saw a weekly loss of $2.44. Domestic crude prices decreased after EIA’s weekly report revealed that total domestic crude inventories increased by 2 million bbl, increasing total stocks to 500.4 million bbl. Increasing stocks could signal that crude demand is declining, while production increased by 300,000 b/d last week to 10 million b/d. For this week, crude prices could decrease further amid growing demand concerns.

In related news, Tropical Storm Sally has led some offshore platforms in the Gulf Coast to shutter production. Chevron shut its Blind Faith and Petronius platforms and evacuated the workers, while Royal Dutch Shell said it began shutting some of its offshore drilling operations on Sunday. However, according to reports, its offshore production was unchanged, and all personnel remain on production platforms. Additionally, Murphy Oil shut the Delta House platform because it is in the path of the storm. The exact impact of the storm and how long operations remain shuttered will determine if crude supply will be impacted in the region, which could lead to fluctuations in crude prices. Any crude price impacts will likely be contained to the region and not have a national impact.

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.

As Summer Fades Away, Cheaper Gas Prices Here to Stay

September 8th, 2020 by jcasselano

Motorists saw plenty of savings at the pump from Memorial Day through Labor Day. The national gas price average during the unofficial start and stop to summer was $2.15 – the cheapest since 2004. Demand was decimated this summer, which ultimately meant increased supply and cheap gas prices. That trend continues. In its latest report, the Energy Information Administration (EIA) reported that demand dropped from 9.16 million b/d to 8.79 b/d. While gasoline stocks dropped by 4.3 million bbl to 234.9 million bbl, total supply is 5.2 million bbl more than this time last year.

“Summer may be fading into the rearview mirror, but less expensive gas prices are not,” said Jeanette Casselano, AAA spokesperson. “Moving into fall we traditionally see a drop in demand and further savings at the pump. This year that means pump prices could possibly push even lower then we’ve already seen in 2020.”

On the week, the majority of state averages are cheaper by a few cents. A few states in the Mid-West did see more significant price drops ranging from a nickel to a dime. The small handful of states with increases saw a jump of just penny or two, with the exception of Florida (+6 cents).

At $2.21, today’s average is two cents less than last week, one penny more than last month and 35 cents cheaper than a year ago.

Quick Stats

  •  The nation’s top 10 largest weekly decreases: Ohio (-11 cents), Indiana (-9 cents), Kentucky (-6 cents), Michigan (-6 cents), Wisconsin (-5 cents), North Carolina (-4 cents), Illinois (-4 cents), South Carolina (-4 cents), Washington, D.C. (-3 cents) and Oklahoma (-3 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.88), Texas ($1.89), Oklahoma ($1.90), Louisiana ($1.91), Arkansas ($1.91), Missouri ($1.92), Alabama ($1.93), South Carolina ($1.96), Tennessee ($1.96) and Kansas ($2.00).

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI decreased by $1.60 to settle at $39.77 per barrel. The price of crude decreased in reaction to a decline in the stock market at the end of last week. The price decreased despite EIA’s weekly report revealing that total domestic crude inventories dropped by 9.4 million bbl, lowering total domestic stocks to 498.4 million bbl. For this week, crude prices could decline further if crude demand concerns arise amid another stock market downturn.

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 and Pump Prices Jump Across the Country

August 31st, 2020 by EEdmonds

The national gas price average spiked by a nickel on the week to $2.23, but is expected to push cheaper in the week ahead. Pump prices jumped as a result of Hurricane Laura and an increase in demand for one of the highest measurements of the year.

“It’s typical to see increased demand and more expensive gas prices ahead of a storm, especially one that threatens rigs and refineries in the Gulf of Mexico region,” said Jeanette Casselano. “The latest industry reports indicate that facilities in Texas have already begun the restarting process, which means there is no major threat to gasoline stocks and gas prices should push cheaper.”

However, operations in the Lake Charles, La., region are still down and could be for some time. This includes the Lake Charles CITGO (440,000 b/d) and Phillip66 (239,400 b/d) facilities. In the Gulf of Mexico, the Bureau of Safety and Environmental Enforcement (BSEE) reports that 70% of current oil production is still shuttered, which is still significant but better when compared to 84% reported when the storm hit.

The second factor pushing prices more expensive in the last week was the Energy Information Administration (EIA) report that gas demand increased from 8.63 million b/d to 9.16 million b/d. While higher than we’ve seen throughout the summer, this estimated rate is 739,000 b/d lower than the rate last year at this time. Moreover, total domestic gasoline supplies decreased by 4.6 million bbl last week to 239.2 million bbl, but the current level is 7.2 million bbl higher than the level at this time last year.

Today’s national average is a nickel more than last month, but 35 cents cheaper than a year ago. On the week, all but five states saw state gas price averages increase. Of those that saw jumps, nearly 20 state averages are 5 to 15 cents more expensive.

Quick Stats

  •  The nation’s top 10 largest weekly increases: West Virginia (+14 cents), Ohio (+13 cents), Indiana (+10 cents), North Carolina (+9 cents), Pennsylvania (+9 cents), Delaware (+9 cents), Virginia (+9 cents), Minnesota (+8 cents), South Carolina (+8 cents) and Tennessee (+8 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.88), Louisiana ($1.89), Texas ($1.90), Arkansas ($1.92), Oklahoma ($1.92), Alabama ($1.93), Missouri ($1.94), Tennessee ($1.99), South Carolina ($2.00) and Kansas ($2.00).

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI decreased by seven cents to settle at $42.97 per barrel. Although crude prices ended the day lower, crude prices increased on the week as Tropical Depression Laura reduced crude production in the Gulf of Mexico. For this week, crude prices may rise again due to a weak U.S. dollar and if prolonged closure of rigs and production platforms tighten domestic crude inventories amid rising demand. However, EIA’s latest weekly report revealed that total domestic crude inventories, currently sitting at 507.8 million bbl, are 80 million bbl higher than where they were during this time in August 2019. The higher level could play a role in stabilizing crude prices.

As of Monday morning, the BSEE Hurricane Response Team reports:

  • Personnel are still evacuated from a total of 137 production platforms, 21.31 percent of the 643 manned platforms in the Gulf of Mexico.
  • Personnel are still evacuated from 2 rigs (non-dynamically positioned), equivalent to 16.67 percent of the 12 rigs of this type currently operating in the Gulf.
  • From operator reports, BSEE estimates that approximately 70% percent of the current oil production in the Gulf of Mexico remains shuttered.

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 $2.18, the national gas price average increased by one cent on the week. That is the same price as a month ago and 41 cents cheaper than a year ago.

The minimal change reflects the slow movement at pumps across the country on the week. The vast majority of states (30) saw pump prices fluctuate by a penny, if at all. A few states in the Mid-Atlantic and Mid-West saw more significant jumps, including North Carolina (+7 cents), Kentucky (+6 cents), Virginia (+5 cents) and West Virginia (+5 cents), while Indiana (-5 cents) holds the spot for the largest weekly decrease. The increase in these states could be a result of increased demand, but nationally demand saw a one week decline.

“Gasoline stocks hit their lowest level since the pandemic began and demand dipped on the week, down to 8.6 million b/d,” said Jeanette Casselano, AAA spokesperson. “These decreases typically lead to cheaper pump prices, but this summer we’ve seen atypical gas price trends.”

The Energy Information Administration recorded gasoline stocks at their largest one-week draw since May. Total stocks fell by 4 million bbl down to 243.7 million bbl. Year-over-year, stocks are at a 10 million surplus while demand sits 1.3 million b/d less. U.S refinery utilization rates continue to hover at 80%.

Hurricane Watch

This week the market is watching Tropical Storms Marco and Laura. Marco, whose force is decreasing and is expected to be a tropical depression late on Tuesday, is less of a concern. However, Laura is forecasted to move into the southeastern Gulf of Mexico and become a hurricane by early Tuesday.

According to the U.S. Department of Interior’s Bureau of Safety and Environmental Enforcement, approximately 58 percent, or 1.065 million b/d, of crude production in the Gulf of Mexico has been shuttered ahead of the storms and 114 (18%) platforms evacuated.

While gasoline stocks remain at a healthy level, if platforms and rigs are offline for an extended amount of time, supply could tighten and gas prices could be impacted. AAA will continue to monitor activity and provide related gas price updates.

Quick Stats

  • The nation’s top 10 largest weekly changes: North Carolina (+7 cents), Kentucky (+6 cents), Virginia (+5 cents), West Virginia (+5 cents), Indiana (-5 cents), Illinois (+3 cents), Michigan (+3 cents), Wisconsin (-3 cents), South Dakota (+2 cents) and Iowa (+2 cents).
  • The nation’s top 10 least expensive markets: Mississippi ($1.83), Louisiana ($1.86), Arkansas ($1.87), Alabama ($1.88), Texas ($1.88), Oklahoma ($1.88), Missouri ($1.90), Tennessee ($1.91), South Carolina ($1.92) and Kansas ($1.97).

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI decreased by 48 cents to settle at $42.34 per barrel. Crude prices were supported by growth in the strength of the U.S. dollar. Additionally, domestic crude prices decreased despite EIA’s weekly report revealing that total domestic inventories decreased by 1.6 million bbl last week, lowering total stocks to 512.5 million bbl. For this week, crude prices could increase, depending on the impact of Tropical Storms Laura and Marcos. If crude production continues to decrease and stays offline for an extended period, crude prices could increase as supply tightens.

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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