Washington, D.C. – AAA reports pump prices continue their slow seasonal descent, despite a slight rebound in oil prices due to waning fears of a global slowdown caused by the COVID-19 omicron variant.
The national average for a gallon of gas fell two cents on the week to $3.33.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by nearly 4 million bbl to 219,304 million bbl last week. Meanwhile, gasoline demand was relatively flat, creeping upwards from 8.8 million b/d to 8.9 million b/d. The slight increase in demand was countered by crude prices in the low $70s bbl.
Today’s national average of $3.33 is eight cents less than a month ago and $1.17 more than a year ago.
The nation’s top 10 largest weekly decreases: Michigan (?6 cents), Indiana (?5 cents), Alabama (?5 cents), Illinois (?4 cents), Texas (?4 cents), Missouri (?4 cents), South Carolina (?4 cents), New Mexico (?4 cents), Wyoming (?4 cents) and North Dakota (?4 cents).
The nation’s top 10 most expensive markets: California ($4.67), Hawaii ($4.33), Nevada ($3.88), Washington ($3.87), Oregon ($3.78), Arizona ($3.78), Alaska ($3.71), Idaho ($3.62), Utah ($3.58) and Pennsylvania ($3.56).
Oil Market Dynamics
At the close of last week’s formal trading session, WTI increased 73 cents to settle at $71.67. Crude prices increased slightly after EIA’s weekly report showed that total domestic crude inventories decreased by 200,000 bbl to 432.9 million bbl.
The current storage level is approximately 14 percent lower than last year’s storage level at this time, which is helping to keep crude prices elevated.
Additionally, prices rebounded last week as optimism increased that the omicron variant of the COVID-19 virus will not have as large an impact on global energy demand as initially feared. For this week, continued optimism could help crude prices continue to rise.
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.