AAA Newsroom: National Gas Price Report for February 19th, 2019

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On the week, 28 states saw gas price averages increase by at least a nickel, pushing the national gas price average up six-cents to land at $2.33. That is the largest one-week increase seen at the national level this year. Today’s gas price average is nine-cents more expensive than last month, but 19-cents cheaper than a year ago.

“Motorists are seeing more expensive gas prices as a result of ongoing refinery problems coupled with crude oil prices hitting their highest level so far this year as global crude inventories tighten,” said Jeanette Casselano, AAA spokesperson. “Inventories are likely to continue to tighten and keep gas prices higher through the end of the month.”

The latest Energy Information Administration (EIA) weekly report details demand dropping for a second week, to total at 8.6 million b/d. Frigid and severe winter weather has been a driving factor for declining demand and this week’s approaching storm from the Plains to the Northeast has the potential to drop demand further. Refinery problems and increasing exports have kept inventories at minimal builds. For the week ending Feb. 8, inventories increased only 408,000 bbl to total 258.3 million bbl.

Quick Stats

  • The nation’s top 10 least expensive markets are: Alabama ($2.04), Mississippi ($2.04), Missouri ($2.07), Arkansas ($2.07), Louisiana ($2.07), South Carolina ($2.08), Texas ($2.09), Colorado ($2.09), Kansas ($2.11) and Virginia ($2.11).
  • The nation’s top 10 largest weekly increases are: Michigan (+16 cents), Oklahoma (+12 cents), Minnesota (+11 cents), Texas (+11 cents), Kansas (+10 cents), Arkansas (+10 cents), Delaware (+10 cents), Maryland (+9 cents), Iowa (+9 cents) and Kentucky (+9 cents).

Great Lakes and Central

Gas prices are 4 to 16 cents more expensive on the week across the Great Lakes and Central states mostly due to ongoing refinery maintenance and inventories tightening. Eleven states in the region have averages that are a nickel or more expensive since last week: Michigan (+16 cents), Minnesota (+11 cents), Kansas (+10 cents), Iowa (+9 cents), Kentucky (+9 cents), Nebraska (+8 cents), Missouri (+8 cents), Wisconsin (+7 cents), Ohio (+6 cents), Indiana (+5 cents) and Illinois (+5 cents).

While gas prices are less expensive than a year ago, they are more expensive than last month for most Great Lakes and Central states. In fact, four states land on the top five chart for all states in the country with the largest month-over-month difference: Michigan (+35 cents), Ohio (+25 cents), Wisconsin (+22 cents) and Indiana (+20 cents).

Regional inventories drew down by 3.2 million bbl, according to EIA latest reports, to total at 58.6 million bbl. This is the second lowest inventory level of the year. Regional refinery utilization is also down nearly 9 percent. The large draw and drop in utilization are pushing gas prices higher.

South and Southeast

Three South and Southeast have seen gas prices increase by at least a dime on the week and also land on the top 10 list with this week’s largest increases in the country: Oklahoma (+12 cents), Texas (+11 cents) and Arkansas (+10 cents). Despite pump jumps for all states in the region, states in the South and Southeast tout the cheapest average in the country: Alabama ($2.04), Mississippi ($2.04), Arkansas ($2.07), Louisiana ($2.07), South Carolina ($2.08) and Texas ($2.08).

EIA reports that regional inventories built by a substantial 5.7 million bbl for the week ending Feb. 5, registering total inventories once again above the 90 million bbl mark. Year-over-year, inventories sit at a 7 million bbl surplus. The large inventory may help motorists only see modest pump price jumps through the end of the month as much of the region’s refineries enter maintenance season.

Mid-Atlantic and Northeast

With a penny decrease, Massachusetts ($2.38) was the only state in the region to see gas prices drop on the week while Vermont ($2.38) and Washington, D.C. ($2.52) averages held steady. For all other states, gas prices are as much as a dime more expensive on the week. Delaware (+10 cents) and Maryland (+9 cents) saw the largest jumps.

Inventories measure at 69.5 million bbl following a draw of 1.775 million bbl, according to the EIA. The latest regional refinery utilization dropped five percent down to 69.7 percent, the lowest of any region in the country. With reduced utilization, the region may see stocks tighten in coming weeks which may drive up gas prices.

Rockies

Utah (-5 cents), Wyoming (-2 cents), and Idaho (-1 cents) are among the fewer than 10 states where gas price averages decreased on the week. After weeks at nearly $2/gal, Colorado’s average jumped seven-cents to $2.09. Idaho has the most expensive average in the region at $2.29.

With a build of 151,000 bbl, inventory measures at 7.5 million bbl. This is the largest inventory level for the Rockies region in 52-weeks and should help to keep gas price fluctuation modest for the rest of the month.

West Coast

Motorists in the West Coast region are paying some of the highest pump prices in the nation, with most of the region’s states landing on the nation’s top 10 most expensive list. At $3.27, California is the most expensive market. Hawaii ($3.26), Washington ($2.86), Nevada ($2.84), Alaska ($2.82) and Oregon ($2.74) follow. Arizona ($2.42) is the only state in the region that dropped from the 10 most expensive markets list this week. Prices in the region have mostly declined on the week, with Arizona (-2 cents) seeing the largest drop.

EIA’s recent weekly report showed that West Coast gasoline stocks decreased for a second week. They fell by approximately 500,000 bbl to 32.1 million bbl. Stocks are approximately 2.3 million bbl lower than at this time last year, which could cause prices to spike if there is a supply challenge in the region this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.18 to settle at $55.59 – the highest price point of the year. Crude prices continued their ascent last week, due to growing belief that global supply is tightening. OPEC’s 1.2 million b/d production cut agreement, which is in effect for the first six months of 2019, has helped to rebalance the market. Also, an increasing reduction in crude exports from Venezuela due to U.S.-imposed sanctions has contributed to market observers believing the market will grow tighter in the coming weeks.

These concerns will likely bolster crude prices even more this week, and market observers will look to this week’s EIA report to see if there are additional indicators of market tightening. As crude prices increase, American motorists can expect pump prices to follow suit, since approximately 50 percent of the cost consumers pay at the pump is due to the cost per barrel of crude oil.

Additionally, EIA reported that total domestic crude inventories grew by 3.6 million bbl to 450.8 million bbl last week. High crude production in the U.S., which held steady at a staggering 11.9 million b/d last week, contributed to the growth in crude stocks around the country and is expected to help meet global crude demand as supply challenges loom.

In related news, Baker Hughes Inc. reported that the U.S. added three oilrigs last week, bringing the total to 857. When compared to last year at this time, there are 59 more rigs this year.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

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AAA Newsroom: Gasoline Demand Hits Lowest Level in Nearly Two Years Pushing Pump Prices Even Cheaper

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The latest Energy Information Administration (EIA) data registers gasoline demand at 8.6 million b/d for the week ending December 28 – the lowest level on record since February 2017. Despite record motor vehicle travel for the holiday, demand was down nearly 900,000 bbl, suggesting that demand this winter could be lower than expected.

Today’s national gas price average is $2.24 and has declined for 12 weeks in a row. The national average is three-cents cheaper on the week, 20-cents cheaper than last month and 25-cents cheaper year-over-year.

“As the global crude market continues to be oversupplied, oil prices are dropping, continuing last week’s trend,” said Jeanette Casselano, AAA spokesperson. “This is good news for motorists filling up at the pump.”

Quick Stats

  • The nation’s top 10 least expensive markets are: Missouri ($1.82), Oklahoma ($1.90), Arkansas ($1.91), Texas ($1.91), Alabama ($1.91), South Carolina ($1.91), Mississippi ($1.91), Louisiana ($1.93), Kansas ($1.93), and Ohio ($1.95).
  • The nation’s top 10 yearly decreases are: Michigan (-55 cents), Illinois (-49 cents), Ohio (-47 cents), Indiana (-47 cents), Iowa (-47 cents), Wisconsin (-46 cents), Nebraska (-41 cents), Missouri (-41 cents), Kentucky (-39 cents), and Delaware (-36 cents).

Rockies

Motorists in Montana (-9 cents), Colorado (-7 cents), Utah (-6 cents), and Wyoming (-5 cents) saw the largest weekly decreases in the country. With the declines, state gas price averages are inching toward all being close to or below the $2.50 mark: Utah ($2.55), Wyoming ($2.54), Idaho ($2.53), Montana ($2.33), and Colorado ($2.20).

With regional refinery utilization jumping six percent on the week, gasoline stocks increased 252,000 bbl. The EIA reports that gasoline stocks for the region register at 7.2 million bbl. Historically, the region sees stocks build throughout Q1 ahead of peak summer tourism season.

Great Lakes and Central

This week, nine Great Lakes and Central states land on the top 10 list of largest year-over-year difference in gas prices in the country: Michigan (-55 cents), Illinois (-49 cents), Ohio (-47 cents), Indiana (-47 cents), Iowa (-45 cents), Wisconsin (-46 cents), Nebraska (-41 cents) Missouri (-41 cents) and Kentucky (-39 cents).

This week, gas prices in the region range from $2.20 in North Dakota to $1.82 in Missouri.

Gasoline inventories continued to build, adding 1.2 million bbl. This trend is expected to continue into the early half of the year. At 54.2 million bbl, stocks are at a 3.5 million bbl year-over-year surplus.

South and Southeast

The seven South and Southeast states that are among the top 10 cheapest in the country this week are the same as this time last year, but the year-over-year price differential is eye-opening: Arkansas (-41 cents), Oklahoma (-36 cents), Mississippi (-35 cents), Louisiana (-35 cents), South Carolina (-34 cents), Alabama (-34 cents) and Texas (-34 cents).

This week’s largest build of gasoline stocks was seen in the South and Southeast region. With the addition of 3.5 million bbl, total stocks measure at 89.2 million bbl – an all-time record according to EIA data.

Mid-Atlantic and Northeast

On the week, gas prices only dropped three to five cents across all Mid-Atlantic and Northeast states. Connecticut ($2.58), New York ($2.58) and Washington, D.C. ($2.55) carry the most expensive gas price averages in the region and land on the top 10 list of most expensive states in the country, which was also the case last year. However, today’s averages are as much as 15 cents cheaper than at the same time in 2018.

The latest EIA data shows gasoline stocks built by 724,000 bbl. Analysts speculate this was a low build for the region and partially due to low import rates on the week. Total stocks now sit at 61 million bbl.

West Coast

Motorists in the West Coast region continue to pay the highest pump prices in the nation, with all of the region’s states landing on the nation’s top 10 most expensive list. California ($3.32) is the nation’s most expensive market, followed by Hawaii ($3.30), Washington ($3.05), Alaska ($3.01), Oregon ($2.91), Nevada ($2.92) and Arizona ($2.63). While expensive, prices are decreasing, with all state averages moving lower on the week: Hawaii (-6 cents) and Washington (-6 cents) saw the largest drops.

EIA’s recent weekly report showed that West Coast gasoline stocks increased by approximately 1.2 million bbl to 28.3 million bbl. Stocks are approximately 4.6 million bbl lower than at this time last year, which could cause prices to spike if there is a supply challenge in the region this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased 87 cents to settle at $47.96. Oil prices were volatile last week, as market observers continue to believe that the global crude market is oversupplied. Moreover, analysts are also wary of the impact a potential economic slowdown in 2019 could have on global crude oil demand. In the coming weeks, market observers will look for indications that OPEC’s global pact with large non-OPEC crude producers (including Russia) will reduce crude production by 1.2 million b/d for at least the first six months of 2019, which may help reduce the growing global glut of crude. In turn, this could drive up crude oil prices and, subsequently, gas prices.

In related news, EIA’s latest weekly petroleum status report revealed that total domestic crude inventories held steady for the second week at 441.4 million bbl. Domestic crude production also held steady for a second week at a record high of 11.7 million b/d. Steady inventories amid high production underscore how oversupplied the market currently is, while demand for gasoline remains at a two-year low. Additionally, Baker Hughes, Inc. reported that the U.S. lost eight oilrigs last week, bringing the current total of active oilrigs to 877. When compared to the total number of active rigs at this time last year, there are 135 more rigs this year.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

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AAA Newsroom: National Gas Price Average Inches Up for First Time in Three Months

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At a penny more expensive on the week, the national gas price average ($2.25) increased for the first time since October. Despite the increase, today’s average is still cheaper month-over-month (-14 cents) and year-over-year (-28 cents).

“The price of crude oil has been slowly, but steadily increasing since the beginning of the year, which is starting to push up pump prices,” said Jeanette Casselano, AAA spokesperson. “The price per barrel (WTI) increased $3 from last Monday to close on Friday to settle at $51 per barrel.”

Last week saw not only more expensive crude oil, but a sizeable build in U.S. gasoline stocks and a small increase in demand. Overall demand has been low lately, contributing to the growth in stocks and helping to keep gas prices lower despite increasing crude prices.

Quick Stats 

  • The nation’s top 10 largest monthly decreases are: Montana (-33 cents), Idaho (-32 cents), Colorado (-32 cents), Wyoming (-31 cents), Utah (-29 cents), Hawaii (-27 cents), South Dakota (-24 cents), North Dakota (-22 cents), New Mexico (-21 cents) and Minnesota (-20 cents).
  • The nation’s top 10 largest yearly decreases are: Michigan (-57 cents), Illinois (-53 cents), Iowa (-49 cents), Indiana (-48 cents), Wisconsin (-45 cents), Nebraska (-45 cents), Ohio (-44 cents), Kentucky (-43 cents), Minnesota (-41 cents) and Kansas (-40 cents).

Great Lakes and Central

Pump prices are rising across the Great Lakes and Central states with Ohio (+8 cents), Indiana (+8 cents), Missouri (+7 cents), Michigan (+6 cents), Iowa (+6 cents) and Kentucky (+4 cents) seeing the largest jumps in the region on the week. With these increases, many states’ averages have surpassed the $2/gal mark except for Missouri ($1.89) and Kansas ($1.97), though motorists can still find gas below the $2/mark in many states in the region.

For the sixth straight week, gasoline inventories built, adding a staggering 2.7 million bbl in the latest Energy Information Administration (EIA) report. Total stocks sit at 57 million bbl – a 4 million bbl year-over-year surplus.

Rockies

All states in the Rockies region, with the exception of Montana, make an appearance on the top 10 list of states with the biggest changes on the week: Wyoming (-8 cents), Colorado (-7 cents), Idaho (-7 cent) and Utah (-6 cents). For a second week, these four states saw some of the largest weekly decreases in the country. While not as large, Montana (-2 cents) saw a decrease as well.

Compared to a month ago, gas prices are nearly 40-cents cheaper in the region. In fact the top states with the largest month-over-month difference are all of the Rockies states: Montana (-33 cents), Idaho (-32 cents), Colorado (-32 cents), Wyoming (-31 cents) and Utah (-29 cents).

At 92 percent, regional refinery utilization is at its highest in weeks and gasoline stocks built, adding 242,000 bbl. Stocks are expected to continue to build throughout the winter and gas prices are likely to remain low.

South and Southeast

Gas prices are fluctuating across the South and Southeast states with increases and decreases as much as four cents on the week. Regardless, the majority of states continue to carry the cheapest gas prices in the country, with seven states landing on the top 10 list for the least expensive gas: Arkansas ($1.90), Mississippi ($1.92), Alabama ($1.92), Louisiana ($1.92), Oklahoma ($1.93), Texas ($1.92) and South Carolina ($1.95)

Total stocks continue to measure above 89 million bbl. The week brought a small build, according to EIA data.

Mid-Atlantic and Northeast

Pump prices across the Mid-Atlantic and Northeast states are making small jumps and decreases this week. While most states have cheaper gas prices, as much as four cents, a few states saw prices increase: Delaware (+4 cents), Tennessee (+3 cents), Maryland (+1 cent) and Pennsylvania (+1 cent).

As demand remains low, gasoline stocks continued to grow this week adding 2.5 million bbl. EIA data shows stocks sit at a 7.6 million surplus year-over-year, which should help to keep any increases minimal for the winter.

West Coast

Pump prices in the West Coast region remain among highest in the nation, with all of the region’s states landing on the nation’s top 10 most expensive list. California ($3.28) is the nation’s most expensive market, followed by Hawaii ($3.26), Washington ($2.99), Alaska ($2.94), Nevada ($2.90), Oregon ($2.88) and Arizona ($2.59). While expensive, prices are falling, with all state averages moving lower on the week: Alaska (-8 cents) and Washington (-5 cents) saw the largest drops.

EIA’s recent weekly report showed that West Coast gasoline stocks surged by approximately 2.4 million bbl to 30.7 million bbl during the week ending on January 4, the largest one-week build in nearly 26 years. However, stocks are approximately 2.7 million bbl lower than at this time last year, which could cause prices to spike if there is a supply challenge in the region this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased $1.00 to settle at $51.59. Although they ended down for the day, crude prices increased overall last week due to optimism that the trade tensions between China and the U.S. may be subsiding. Reduced trade volatility will likely help curtail stalled global economic growth that could have reduced global demand for crude. Moreover, with OPEC’s global pact with large non-OPEC crude producers (including Russia) to reduce crude production by 1.2 million b/d for at least the first six months of 2019 now in effect, the global glut of crude is expected to decline, helping to push crude prices higher. If crude prices continue to climb, motorists will likely see gas prices follow suit.

In related news, EIA reported that total domestic stocks of crude fell from 441.4 million bbl to 439.7 million bbl in its latest weekly petroleum status report. Additionally, Baker Hughes, Inc. reported that the U.S. lost four oilrigs last week, bringing the current total of active oilrigs to 873. When compared to the total number of active rigs at this time last year, there are 121 more rigs this year.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

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