Since Monday, the national average for a gallon of regular gasoline has increased by four cents to $2.20, which is five cents more than a week ago, eight cents more than a month ago, but 35 cents less than a year ago. In the new weekly report from the Energy Information Administration, gas demand increased by 375,000 b/d to 7.98 million b/d last week and supplies tightened amid lower refinery utilization. After decreasing for four weeks, the increase in gas demand has helped to push pump prices up across the country. The increase in the national average is likely temporary as the country enters the winter driving season — a time when gas demand typically hits the lowest levels for the year.
At the close of Thursday’s formal trading session, WTI increased by 54 cents to settle at $48.36 — about two dollars more than the price at the end of last week. Crude prices rose due to a weak dollar and increasing investment based on market optimism that coronavirus vaccines will help crude oil demand recover in 2021. Higher crude prices have also helped to lift pump prices, since the price of oil makes up over half of the cost of gasoline. Continued positive news about the vaccines will continue helping the domestic price of crude rise.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Indiana (+20 cents), Michigan (+13 cents), Ohio (+13 cents), Iowa (+9 cents), Wisconsin (+9 cents), Minnesota (+7 cents), Illinois (+7 cents), New Mexico (+6 cents), Texas (+6 cents) and Washington, D.C. (+5 cents).