
Last week was the first time since early June that the national gas price average jumped more than a nickel in under a few days. On the week, it’s a dime more expensive at $2.66 with half of states seeing prices increase by 10 cents or more. However, even with the significant increase, the national average is still cheaper compared to last month (-6 cents) and last year (-19 cents).
Spurred by the Saudi Arabian oil facilities attacks the weekend prior, crude oil (West Texas Intermediate – WTI) increased as much as $10/bbl at its highest point early last week to nearly $64/bbl. Gasoline stations reacted just as swiftly as the market, raising local retail prices by as much as a quarter, which pushed the national average up six cents overnight last Tuesday. However, by the end of last week, crude was down to $58/bbl and gas prices started to stabilize as reports surfaced that Saudi facilities should be fully operational by end of September.
“At $2.66, the national average is a dime more expensive that last week. The good news is we are seeing downward movement with crude oil prices and stabilization at gas pumps, but Americans can expect some fluctuation through the end of the month,” said Jeanette Casselano, AAA spokesperson. “Should Saudi’s crude production be back to full capacity shortly, the price spikes are likely to be temporary.”
In its latest report, the Energy Information Administration (EIA) measured U.S. demand at 8.9 million b/d, which is a substantial 900,000 b/d drop from the previous week and a low reading not seen since February. The decrease in demand amid the spike in crude oil prices could help to keep gas price fluctuations more moderate through the end of the month.
Quick Stats
The nation’s top 10 least expensive markets are: Mississippi ($2.32), Louisiana ($2.32), Arkansas ($2.33), Alabama ($2.34), South Carolina ($2.35), Oklahoma ($2.37), Virginia ($2.37), Texas ($2.38), Tennessee ($2.39) and Missouri ($2.40).
The nation’s top 10 largest weekly increases are: Kentucky (+19 cents), Michigan (+18 cents), Georgia (+17 cents), Minnesota (+16 cents), Maryland (+14 cents), Iowa (+14 cents), Delaware (+14 cents), Mississippi (+14 cents), New Mexico (+13 cents) and South Carolina (+13 cents).
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. California ($3.74) and Hawaii ($3.66) are the most expensive markets in the country. Washington ($3.20), Nevada ($3.15), Oregon ($3.07), Alaska ($2.97) and Arizona ($2.89) follow. All state averages in the region have increased on the week. California (+11 cents) saw the largest increase, followed by Arizona (+6 cents) and Nevada (+5 cents).
The EIA’s recent report for the week ending on September 13, showed that total West Coast motor gasoline stocks decreased by 133,000 bbl to 28.6 million bbl. This level is approximately 340,000 bbl lower than in mid-September 2018. Amid rising oil costs, shrinking stocks put additional pressure on prices as they spiked last week. Motorists in the region will likely see prices continue to stay high this week as the market continues to adjust to higher crude prices.