Since Monday, the national average for a gallon of regular gasoline has increased by five cents to $3.41. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks grew by 2.1 million bbl to 250 million bbl last week. On the other hand, gasoline demand dropped from 8.51 million b/d to 8.23 million b/d. An increase in total stocks and a decrease in demand typically put downward pressure on pump prices, but rising crude prices continue to push prices higher instead. If crude prices continue to climb, pump prices will likely follow suit.
At the close of Thursday’s formal trading session, WTI increased by $2.01 to settle at $90.27. The tension between Russia and Ukraine continues to contribute to rising oil prices. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market. Moreover, OPEC+ announced this week it will stick to its plan to increase crude production by 400,000 b/d next month despite calls for it to increase output more to help meet demand. Additionally, EIA reported that total domestic crude stocks decreased by 1.1 million bbl last week to 415.1 million bbl. The current stock level is approximately 13 percent lower than at the end of January 2021, contributing to pressure on domestic crude prices.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Michigan (+14 cents), Wisconsin (+13 cents), Florida (+12 cents), Kentucky (+12 cents), Ohio (+11 cents), Indiana (+10 cents), Minnesota (+10 cents), Illinois (+8 cents), South Carolina (+8 cents) and Oklahoma (+8 cents).