AAA reports pump prices stabilize as demand, oil costs rebound

LEXINGTON, Ky. (WTVQ/PRESS RELEASE) – The slide in gas prices slowed to a crawl over concerns about increased global oil prices and the return of seasonal domestic gas demands.

According to AAA, the war in Ukraine and fear of less Russian oil entering the market caused the price of crude to creep back above $100 a barrel. Meanwhile, as more places in the U.S. see pump prices fall below $4 a gallon, demand is ticking back up. Domestically, the national average for a gallon of gas has fallen to $4.08.

In Kentucky, AAA reports the average price is down 5 cents compared to last week at this time, one of the nation’s 10 largest drops on the week.

“Now that pump prices have dipped back below their record highs, and people are starting to enjoy warmer weather and longer days, we expect to see more people hitting the road for long-awaited getaways,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “Unfortunately, declines in gas price could be temporary if the global price of oil continues to push back upward because of tightening supplies.”

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 3.5 million barrels to 233.1 million barrels last week. AAA reports gasoline demand increased slightly from 8.5 million barrels per day to 8.73 million barrels per day. Although supply and demand factors would have typically supported elevated pump prices, the fluctuating oil price continues to be the main factor influencing prices at the pump. Pump prices could still face some downward pressure if oil prices remain near $100 per barrel.

According to AAA, Monday’s national average for a gallon of gas is $4.08, which is 19 cents less than a month ago, and $1.21 more than a year ago.

Kentucky’s gas price average is now at $3.80, down 5 cents on the week and just like the national average, down 19 cents on the month. Today’s price is $1.06 more than a year ago.

Checking nearby, AAA reports the average price for a gallon of unleaded today in Ohio is $3.78, West Virginia $3.95, Virginia $3.94, Tennessee $3.85, Indiana $3.92, Illinois $4.35 and Missouri $3.67.

Source: AAA

The nation’s top 10 largest weekly decreases: Ohio (−7 cents), Delaware (−7 cents), Florida (−6 cents), Indiana (−6 cents), California (−5 cents), Georgia (−5 cents), Pennsylvania (−5 cents), Kentucky (−5 cents), Virginia (−4 cents) and West Virginia (−4 cents).

The nation’s top 10 least expensive markets: Kansas ($3.66), Missouri ($3.66), Arkansas ($3.69), Georgia ($3.70), Oklahoma ($3.71), Texas ($3.71), South Carolina ($3.74), Mississippi ($3.77), Ohio ($3.77) and Iowa ($3.78).

According to AAA, at the close of Thursday’s formal trading session, WTI increased by $2.70 to settle at $106.95. According to EIA’s weekly report, U.S. commercial crude oil inventories increased by 9.4 million barrels from the previous week to reach 421.8 million barrels. Despite reports of increased inventory, crude oil prices jumped last week as the European Union announced they are drafting plans to ban Russian oil imports, a move that could tighten global supply as member countries look for new sources for crude oil in an already tight market.

Additionally, the most recent Oil Market Report from the International Energy Agency (IEA) forecasts that Russian oil output will shrink by about 1.5 million barrels per day this month as the result of financial and export sanctions. The crude oil market will likely remain volatile this week and could continue to fluctuate if concerns about supply persist.