Motorists are paying more to fill up than last Monday in nearly 30 states with the vast majority paying just a few pennies more. On the week, South Carolina (+8 cents) saw the largest increase followed by these states who each had a six cent increase: Michigan, New Mexico, Indiana, Delaware, and Minnesota.
With the majority of states seeing increases, the national gas price average pushed a penny more expensive. The overall weekly increases seen across the country are likely a reaction to the latest Energy Information Administration’s report showing increased demand (from 8.3 million b/d to 8.7 million b/d) while supply dwindled by 2.3 million bbl.
“Following a jump in demand, we’ve seen a number of state gas price averages increase on the week. However, the majority of these increases were just a few pennies,” said Jeanette Casselano McGee, AAA spokesperson. “With many states seeing rising COVID-19 case numbers and a number of officials warning against holiday travel, demand is likely to see a dip in coming weeks.”
Despite the weekly increase, gas prices remain cheap both compared to last month (-5 cents) and last year (-48 cents).
- The nation’s top 10 largest weekly changes: Ohio (-9 cents), South Carolina (+8 cents), Michigan (+6 cents), New Mexico (+6 cents), Delaware (+6 cents), Minnesota (+6 cents), Indiana (-6 cents), Kentucky (+5 cents), Georgia (+5 cents) and Washington, D.C. (+4 cents).
- The nation’s top 10 least expensive markets: Missouri ($1.76), Mississippi ($1.80), Oklahoma ($1.80), Texas ($1.80), Arkansas ($1.82), Louisiana ($1.84), Alabama ($1.86), Tennessee ($1.86), Kansas ($1.87) and South Carolina ($1.89).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 99 cents to settle at $40.13. Domestic crude prices decreased at the end of the day due to rising coronavirus infections worldwide, which could lead to a decrease in crude demand as countries and states implement new measures to reduce transmission of the virus. For this week, crude prices may continue to decline if demand concerns continue to worry the market.
Additionally, the Organization of the Petroleum Exporting Countries (OPEC) last week released its revised outlook for world oil demand through the end of the year, estimating demand will reduce by approximately 300,000 b/d to 96.3 million b/d. The revision raised market expectations that the cartel and its allies, including Russia, will either agree to continue or increase current supply cuts when they meet on November 30 and December 1. Currently, OPEC and its partners in the production reduction agreement have agreed to cut crude output by 7.7 million b/d through the end of 2020.
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.