Since Monday, the national average for a gallon of regular gasoline has increased by two cents to $2.44, which is three cents more than a week ago, 19 cents more than a month ago, and two cents less than a year ago. Pump prices have increased this week, while gas demand decreased slightly from 7.83 million b/d to 7.78 last week, according to new data from the Energy Information Administration (EIA). In addition, total domestic gasoline supplies increased by 4.5 million bbl to 252.2 million bbl and total crude utilization across domestic refineries took a small step forward from 81.7 percent to 82.3 percent.
At the close of Thursday’s formal trading session, WTI increased by 54 cents to settle at $56.23, which is the highest settlement price of the year. Crude prices rose this week after the Organization of the Petroleum Exporting Countries and its production reduction agreement partners met to review compliance with their agreement to collectively reduce their crude production by 7.2 million b/d. The group decided to hold the cuts steady and expects output to remain low this year, since demand is forecasted to be lower than expected throughout 2021 due to ongoing crude demand concerns as the pandemic continues to keep travel restrictions in place. Crude prices have also been bolstered by EIA’s latest report showing that total domestic crude inventories dropped by 1 million bbl last week. The current level now sits at 475.7 million bbl.
An increase in crude utilization and increasing crude prices have and will continue to contribute to higher pump prices for drivers throughout the month.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Florida (+10 cents), Utah (+5 cents), Idaho (+5 cents), Wisconsin (+4 cents), Louisiana (+4 cents), Rhode Island (+4 cents), California (+4 cents), Oklahoma (+3 cents), Massachusetts (+3 cents) and New Hampshire (+3 cents).