Since Monday, the national average for a gallon of regular gasoline has increased by a penny to $3.34. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks grew by 1.3 million bbl to 247.9 million bbl last week. On the other hand, gasoline demand rose slightly from 8.22 million b/d to 8.51 million b/d. The increase still puts gas demand in a typical range for the winter driving season, which was 8.8 million b/d in mid-January 2020. Continued growth in the price of crude oil has helped to keep pump prices elevated. If crude prices continue to climb, pump prices will likely follow suit.
At the close of Thursday’s formal trading session, WTI decreased by 74 cents to settle at $86.61. Although the market took a slight step back today due to contract fluctuations, tension between Russia and Ukraine contributed to a crude price surge earlier this week. Since Russia is a member of OPEC+, sanctions over the country’s actions along the eastern border of Ukraine could cause it to withhold crude oil from the global market. In light of tight global supply, the market is concerned that a looming invasion could contribute to a volatile market, leading prices to rise higher. Additionally, EIA reported that total domestic crude stocks increased by 2.4 million bbl last week to 416.2 million bbl. The current stock level is approximately 13 percent lower than in mid-January 2021, contributing to pressure on domestic crude prices.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Florida (+12 cents), Indiana (+9 cents), Ohio (+8 cents), Georgia (+6 cents), Missouri (+5 cents), South Carolina (+5 cents), North Dakota (+5 cents), Illinois (+5 cents), Texas (+4 cents) and Tennessee (+4 cents).