Since Monday, the national average for a gallon of regular gasoline increased by six cents to $3.78. Hurricane Ian has been downgraded to a tropical storm, but its full impact is unknown as rain and wind continue in Florida. Gasoline distribution could be limited in impacted areas due to a lack of electricity and flooded roads and highways. Meanwhile, according to new data from the Energy Information Administration (EIA), gas demand increased nationally from 8.32 million b/d to 8.83 million b/d last week, and total domestic gasoline stocks decreased by 2.4 million bbl to 212.2 million bbl. Higher gasoline demand amid tight supply and fluctuating oil prices have increased the national average. If demand remains robust as supply tightens, drivers should brace for rising pump prices through the weekend.
At the close of Wednesday’s formal trading session, WTI increased by $3.65 to settle at $82.15. Crude prices have increased this week due to market concerns about oil supply. According to the U.S. Bureau of Safety and Environmental Enforcement, 11 percent of crude oil production in the Gulf of Mexico was shuttered to prevent damage from Hurricane Ian. However, some production has resumed, with just over 9 percent of production still shuttered. Moreover, reports have emerged that the Organization of the Petroleum Exporting Countries (OPEC) and its allies – including Russia – known as OPEC+ intend to announce collective oil production cuts at their next meeting on October 5. Additionally, according to the EIA’s latest weekly report, total domestic commercial crude inventories decreased slightly by 200,000 bbl to 430.6 million bbl.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: California (+67 cents), Oregon (+59 cents), Washington (+53 cents), Wisconsin (+46 cents), Alaska (+44 cents), Nevada (+36 cents), Michigan (+30 cents), Arizona (+29 cents), Indiana (+22 cents) and Ohio (+21 cents).