Since Monday, the national average for a gallon of regular gasoline has increased by five cents to $4.24. According to new data from the Energy Information Administration, total domestic gasoline stocks decreased by 2.2 million bbl to 228.6 million bbl last week. However, gasoline demand increased slightly from 8.74 million b/d to 8.86 million b/d. Increasing gas demand and rising oil prices have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $105 per barrel.
At the close of Wednesday’s formal trading session, WTI increased by $5.40 to settle at $107.81. Crude prices rose after the European Union announced a proposal to ban Russian oil imports within six months, while refined product imports would be prohibited by the end of 2022. It’s not clear if the plan will be approved as some members of the 27-nation bloc, such as Slovakia, have stated they will seek exemptions because they need more time to find alternatives to Russian oil. However, given that global crude supply remains tight, crude prices will likely remain volatile amid the news that supply could get tighter if the ban is implemented.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Michigan (+30 cents), Ohio (+19 cents), Washington, D.C. (+18 cents), Pennsylvania (+17 cents), New Jersey (+17 cents), Connecticut (+16 cents), West Virginia (+16 cents), Indiana (+16 cents), North Carolina (+16 cents) and Vermont (+16 cents).