The national average has increased for 14 days in a row following the OPEC oil production agreement on November 30. Today’s average of $2.21 per gallon is up three cents per gallon on the week and two cents per gallon on the month. The national average is up 20 cents compared to the same date last year.

 

Last month, OPEC agreed to cut output by 1.2 million barrels per day beginning January 2017 and markets have continued to react to the production cut agreement with crude oil prices hitting an 18 month high. Retail prices have steadily increased following the news of the OPEC agreement, but the effectiveness of the deal and continued market impacts will hinge on all countries implementing the agreed to production levels.

Quick Stats

• Average gas prices are below $2 per gallon in four states today including: Oklahoma ($1.96), Missouri ($1.97), Arkansas ($1.98) and Texas ($1.99).
• Largest monthly increases include: Michigan (+23 cents), Indiana (+22 cents), Ohio (+21 cents), Illinois (+15 cents), Kentucky (+13 cents) and Delaware (+12 cents).

The West Coast is one of the only regions in the country to see prices drop on the week with the exception of Hawaii ($2.91), where drivers are now paying seven cents more per gallon. Other U.S. coastal regions have followed the price of crude oil upward over the past week. Drivers in the Northeast, Mid-Atlantic, Great Lakes and Southern regions all saw increases at the pump due to the increase in crude oil prices:

Largest Weekly Increase

1. Michigan $2.30     (+9 cents)
2. Indiana $2.21     (+9 cents)
3. Hawaii $2.91     (+7 cents)
4. Ohio $2.22 (+6 cents)
5. Georgia $2.19     (+6 cents)
6. North Carolina $2.18 (+6 cents)
7. Kansas $2.03 (+5 cents)
8. Alabama $2.04 (+5 cents)
9. Virginia $2.11 (+5 cents)
10. Illinois $2.27 (+5 cents)

 

Great Lakes

Pump prices in the Great Lakes remain volatile and continue to be impacted by increasing oil prices. Although prices are up in every state in the region this week, Michigan ($2.30) is ranked in the nation’s top 15 most expensive markets for retail gasoline. Over the past month, the Midwest region has seen some of the most dramatic monthly price increases compared to other parts of the country: Michigan (+19 cents), Ohio (+18 cents), Indiana (+18 cents) and Illinois (+12 cents). These increases can likely be attributed to increases in global crude oil prices and planned maintenance at BP’s refinery in Whiting, Ind. (the region’s largest facility), which lasted throughout the month of November.

Pump prices in midcontinent states remained relatively stable. Despite recent price increases along the southern coast, the Central and Southern regions remain the cheapest markets for retail gasoline:

Least Expensive Markets

1. Oklahoma $1.96
2. Missouri $1.97
3. Arkansas $1.98
4. Texas $1.99
5. Mississippi $2.02
6. South Carolina $2.03
7. Kansas $2.03
8. Alabama $2.04
9. Colorado $2.04
10. Tennessee $2.04

Oil Market Dynamics

Over the weekend, OPEC and non-OPEC producers reached their first deal since 2001 to limit oil output in an effort to reduce global over supply and rebalance the market. Producers from outside the 14-country group agreed to reduce output by 558,000 barrels per day. Of that amount, Russia has agreed to cut 300,000 barrels per day with the remaining non-OPEC members cutting the remaining 258,000 barrels to reach the agreed upon levels. As a result, traders will continue to watch how OPEC and non-OPEC members move forward with the terms of the agreement starting in 2017. At the close of Friday’s formal trading session on the NYMEX, WTI was up 66 cents to settle at $51.50 per barrel.

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.