The national average gas price has risen for the first time in 3 weeks climbing nearly 3 cents in the last week to an average of $2.87 a gallon today according to GasBuddy data compiled from over 10 million price reports from over 135,000 stations in the last week.
“Pushed higher by signs of a lessening in trade tensions between the U.S and the European Union and a drawdown in U.S. oil and fuel inventories following last Wednesday’s Department of Energy’s Weekly Petroleum Status Report, pump prices across the country posted gains that could represent a u-turn in falling pump prices at the halfway point of summer” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “Indications of continued strong summertime demand for gasoline along with robust fuel export numbers could serve to help sustain moderately higher gas prices, but more geopolitical events, such as the closing of oil ports on the Red Sea, affecting Saudi Arabian crude exports, are sure to provide more upwards momentum for fuel prices in the week ahead.”
Oil prices begin the week lower by 50 cents a barrel, and still far below the $75 a barrel value seen just three weeks ago, but pump prices have posted steady gains in the past week with domestic oil inventories 3.2% below the five year average at 404.9 million barrels, following a 6.1 m/b drop last week.
“Despite markets reacting pessimistically last Friday to comments made by Russian energy minister Alexander Novak, who restated the possibility that Russia “could” raise oil production by a million barrels a day if needed, and the rise in the weekly U.S. and Canadian rig count, underlying fundamentals continue to suggest a tightening the global supply of crude. Another contributing footnote, which is often overlooked, is the emerging reality that at just under 118 million barrels, diesel/distillate stockpiles are at their lowest for any month of June going back to 2004. Considering crude is the primary cost component of diesel, continued strong demand and exports bode well for stronger oil prices in the latter half of 2018.”
Over the next few days, pump prices may continue to adjust moderately upwards from their summertime low of last week’s $2.829 a gallon, building on the increases seen at gas stations Thursday and Friday.
Largest weekly gas price changes: Michigan (+16 cents), Ohio (+8 cents), Alaska (+7 cents), Nevada (+5 cents), Nebraska (+5 cents), Hawaii (+5 cents), Kentucky (+5 cents) and South Dakota (+4 cents).
Lowest average gas prices: Alabama ($2.55), Mississippi ($2.55), South Carolina ($2.56), Arkansas ($2.59), Tennessee ($2.59), Louisiana ($2.60), Missouri ($2.60) and Virginia ($2.61).
Highest average gas prices: Hawaii ($3.99), California ($3.69), Alaska ($3.49), Washington ($3.39), Nevada ($3.34), Oregon ($3.26), Utah ($3.13) and Idaho ($3.11).
Gas prices are set to move ever so modestly higher in many states that have seen little movement over the course of the last week, notably the Gulf Coast, the Northeast and Pacific Northwest. The moves are further supported by economic data showing a strengthening U.S. economy which recorded a 4.1% growth rate in the last quarter.
Midsummer demand for fuel, geopolitical influences and the upcoming data on U.S. petroleum product inventories on Wednesday will also set the pace for prices at the pumps as the first days of the month of August beckons.
