Washington, D.C. – The recent surge in the price of gas may seem spooky this Halloween, but it’s not frightening people away from driving as demand continues to rise. The national average price for a gallon of gasoline rose six cents over the past week to hit $3.38.
The pump price has gone up every day in the past 27 days, adding approximately 20 cents to the cost of a gallon of gas.
The recent rise in the pump price is due to higher demand coupled with a decline in stocks alongside elevated crude prices. Global oil production is still below pre-pandemic levels. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 5.4 million bbl to 217.7 million bbl last week.
However, gasoline demand increased from 9.19 million b/d to 9.63 million b/d. Since the cost of oil accounts for more than half of the pump price, consumers will be paying more as long as crude prices remain high.
Today’s national average of $3.38 is 20 cents more than a month ago and $1.22 more than a year ago, and 77 cents more than in 2019.
The nation’s top 10 largest weekly increases: North Carolina (+14 cents), Florida (+14 cents), Arizona (+12 cents), Rhode Island (+11 cents), New York (+11 cents), New Hampshire (+10 cents), Connecticut (+10 cents), New Jersey (+10 cents), Pennsylvania (+9 cents) and Texas (+9 cents).
The nation’s top 10 most expensive markets: California ($4.54), Hawaii ($4.26), Nevada ($3.92), Washington ($3.87), Oregon ($3.78), Alaska ($3.72), Idaho ($3.71), Utah ($3.68), Washington, D.C. ($3.57) and Pennsylvania ($3.56).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $1.26 to settle at $83.76. Crude prices took a slight step back last week due to weakness in the U.S. equity markets; however, prices increased overall after EIA’s weekly report revealed that total domestic crude inventories decreased slightly to 426.5 million bbl.
The current storage level is approximately 13 percent lower than the level at this same time last year. Given supply concerns, the market could continue to push prices higher this week if EIA’s next report shows further tightening.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
About AAA – 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 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety.