Today’s AAA National Average $3.867

Price as of 10/6/22

Pump Price Decreases Slowing as Oil Prices Climb

Pump Price Decreases Slowing as Oil Prices Climb

March 24,2022

Since Monday, the national average for a gallon of regular gasoline has decreased by two cents to $4.23. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks fell by 3 million bbl to 238 million bbl last week. Gasoline demand also decreased from 8.94 million b/d to 8.63 million b/d. The drop in gas demand is contributing to price decreases. However, the steady increase in the price of oil is slowing that decline. If oil prices continue to rise, pump prices will likely follow suit, reversing course from the current downward trend.   

At the close of Wednesday’s formal trading session, WTI increased by $5.66 to settle at $114.93. Crude prices climbed after EIA’s weekly report revealed that total domestic crude stocks declined last week by 2.5 million bbl to 413.4 million bbl, approximately 18 percent lower than the level in mid-March 2021. The current inventory level highlights tightness in the market, contributing to rising prices. Additionally, earlier this week, the Caspian Pipeline Consortium said that it could reduce crude exports by as much as 1 million barrels per day due to storm damage, according to news reports. The pipeline carries oil from Russia and Kazakhstan to buyers in the global market via the Black Sea. While Russian oil is generally being shunned by the global market due to sanctions, loss of barrels from Kazakhstan could further strain already tight markets. News of the potential reduction in supply has contributed to increased crude prices this week.

Largest Weekly Changes

  • Since last Thursday, these 10 states have seen the largest changes in their averages: Maryland (−41 cents), Georgia (−25 cents), Florida (−16 cents), Nevada (+15 cents), Delaware (−12 cents), California (+10 cents), North Carolina (−8 cents), Alabama (−8 cents), Connecticut (−8 cents) and Utah (+7 cents).