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AAA says Gasoline Demand Continues to Grow as Pump Prices Fluctuate

 

AAAWashington, D.C. – AAA reports Gasoline demand measured 8.9 million b/d in the Energy Information Administration’s (EIA) latest weekly report, up nearly 4% from the week prior.

Because of the jump in demand, gasoline supplies tightened to 230.5 million bbl, the lowest level this year, and state gas prices averages saw major fluctuations. On the week, states saw pump price changes ranging from an increase of 15 cents to a decrease of 3 cents.

Gas Prices at the Pump bounce around as demand grows. (AAA)

Gas Prices at the Pump bounce around as demand grows. (AAA)

Today’s national average is $2.87, which is more expensive on the week (+1 cent), month (+12 cents) and year (+94 cents).

“We anticipate demand will continue to increase throughout the month as vaccinations become more widely available and weather turns warmer,” said Jeanette McGee, AAA spokesperson. “This will lead to fluctuation at the pump throughout the spring season.”

One factor that may help to keep the national gas price average below $3.00/gallon is the price of crude, which accounts for nearly 60% of the price at the pump. After hitting a 12-month high of $66.00/bbl last month, crude has been priced mostly at the $60.00/bbl mark recently.

If it stays low, even with demand increasing, it will contribute to less frequent pump price jumps. However, at the end of last week, crude started to see higher movement following a production announcement by Organization of the Petroleum Exporting Countries Plus (OPEC+).

2018-2021 National Gas Price Comparison 4-05-21

Quick Stats

  •  The nation’s top 10 largest weekly changes: Ohio (+15 cents), Michigan (+11 cents), Indiana (+11 cents), Wisconsin (+7 cents), Kentucky (+4 cents), Illinois (+4 cents), Hawaii (+4 cents), Florida (?3 cents), Idaho (+3 cents) and Tennessee (+3 cents).
  • The nation’s top 10 least expensive state averages: Mississippi ($2.58), South Carolina ($2.58), Texas ($2.59), Louisiana ($2.62), North Carolina ($2.62), Oklahoma ($2.62), Missouri ($2.64), Alabama ($2.64), Kansas ($2.66) and Arkansas ($2.67).

Oil Market Dynamics

At the close of last week’s formal trading session, WTI increased $2.29 to settle at $61.45. Crude oil prices saw gains at the end of the week following the OPEC+ announcement that they will modestly increase production by 350,000 bbl starting in May. The production increase is less than the market expected, but enough to send crude oil prices higher. This week prices are likely to fluctuate, but not spike.

 


About AAA – The Auto Club Group

The Auto Club Group (ACG) is the second-largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec, and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking, and financial services, travel offerings, and more.

ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety.

For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.


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