AAA Newsroom: Motorists to see Cheapest Memorial Day Pump Prices in Nearly Two Decades

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When it is safe to travel, AAA expects vacationers will explore America’s backyard

Pump prices continue to increase across the country with nearly every state’s average pushing more expensive on the week, on average by four cents. At the start of the Memorial Day work week, the national gas price average is $1.87.

The last time the national gas price average leading into the holiday was under $2/gallon was 17 years ago in 2003. That year motorists paid, on average, $1.50 to fill-up. Gas prices this year won’t be as cheap as 2003, but today’s national average is a dollar cheaper than one year ago.

“Gas prices around Memorial Day have not been this cheap in nearly 20 years. However, as the country continues to practice social distancing, this year’s unofficial kick-off to summer is not going to drive the typical millions of Americans to travel,” said Jeanette Casselano, AAA spokesperson. “Despite inexpensive gas prices, AAA anticipates this year’s holiday will likely set a record low for travel volume.”

For the first time in 20 years, AAA will not issue a Memorial Day travel forecast due to COVID-19 impacts on the underlying economic data used to create the forecast.

Americans can expect gas prices to continue to push more expensive, possibly hitting $2/gallon in the next few weeks. This is mostly due to demand increasing as states re-open. This week will also bring the Environmental Protection Agency’s waiver on the sale of winter-blend gasoline to an end. Stations will switch over to summer-blend gasoline, which has a lower Reid Vapor Pressure to prevent excessive evaporation when outside temperatures rise. Reducing the volatility of summer gas decreases emissions that contribute to unhealthy ozone and smog levels. Typically, the switchover to summer-blend can cause gas prices to spike during the summer driving season, but that will likely not be the case this year due to the impact of COVID-19 on demand and crude oil prices.

Quick Stats

  • The nation’s top 10 largest weekly increases are: Idaho (+17 cents), Pennsylvania (+8 cents), Wisconsin (+7 cents), Iowa (+7 cents), Colorado (+7 cents), Kansas (+7 cents), Maryland (+6 cents), Utah (+6 cents), Nebraska (+5 cents) and Minnesota (+5 cents).  
  • The nation’s top 10 least expensive markets are: Mississippi ($1.51), Arkansas ($1.52), Oklahoma ($1.52), Missouri ($1.54), Texas ($1.56), Alabama ($1.57), Kansas ($1.57), South Carolina ($1.60), Louisiana ($1.60) and Tennessee ($1.62).

Great Lakes and Central States

The nation’s largest weekly gas price increases can be found for a second week in the Great Lakes and Central States region. Five states from the region land on the top 10 list for largest jumps, though this week’s increases are less than a dime: Wisconsin (+7 cents), Iowa (+7 cents), Kansas (+7 cents), Nebraska (+5 cents) and Minnesota (+5 cents).

With increases over the last two weeks, Illinois ($2.13) is the only state in the region whose average has jumped back over $2/gallon. At $1.86, Indiana carries the second most expensive average in the region, while Missouri ($1.54) touts the cheapest.

The Energy Information Administration (EIA) reports that regional gasoline stocks have decreased for six straight weeks, bringing total stock levels down to the lowest measurement of the year at 54 million bbl. However, stocks remain above the year-ago level of 49.5 million bbl and the five-year average of 52.6 million bbl.

South and Southeast

Gas prices continue to push more expensive for the majority of South and Southeast states as most of the region pushes towards re-opening. With an increase of six cents, Arkansas ($1.52) and Tennessee ($1.62) saw the largest jumps on the week. South and Southeast state pump price averages remain below $2/gallon by 25 – 50 cents. Florida ($1.77) carries the most expensive average while Arkansas ($1.52) touts the cheapest.

Motorists continue to enjoy vastly cheaper prices – 90 cents to more than a dollar cheaper – compared to last year. Even with prices expected to push more expensive this month, filling up will continue to be a cost savings compared to May 2019.

Regional gasoline stocks continue to measure at very healthy levels despite a 1.2 million draw in the EIA’s latest report. Total stocks now measure at 88.3 million bbl. That is 17 million bbl more than the Mid-Atlantic and Northeast regions’ stock level, which is the region with the second highest stock level in the country. While gas prices are likely to increase alongside demand, the healthy stock level should contribute to smaller jumps at the pump.

Mid-Atlantic and Northeast

On the week, Pennsylvania (+8 cents) saw the largest increase among Mid-Atlantic and Northeast states and saw the second biggest jump of all states in the country. Otherwise states in the region saw mostly increases of a few pennies, but no more than a nickel. State averages range between $2.17 in Washington, D.C. to $1.71 in North Carolina. In addition to Washington, D.C., New York ($2.15) and Pennsylvania ($2.14) carry the most expensive averages in the region and land among the top 10 highest in the country.

While gasoline stocks saw a slight increase, to push total stocks to nearly 71 million bbl, regional refinery rates dropped just below 50%. As more states in the region move towards opening, which is likely to increase gasoline demand, motorists can expect gas prices to increase, but still remain cheap compared to typical May pump prices.

Rockies

Motorists in the Rockies are seeing significant savings – more than a $1/gallon – at the pump year-over-year. Idaho (-$1.22), Utah (-$1.17) and Montana (-$1.12) all land on the top 10 list for largest yearly difference in the country. Wyoming has a difference of 97 cents less year-over-year.

The past week brought fluctuation through the region with Idaho (+17 cents), Colorado (+7 cents) and Utah (+6 cents) seeing increases as the pump. Wyoming ($1.82) and Montana ($1.74) mostly held steady. With the jump, Utah’s average increased to $2.02, the only state in the Rockies region with an average more than $1.99/gallon.

Regional gasoline stocks have consistently decreased for six weeks according to EIA data. The latest draw of 400,000 bbl puts total stocks right at 8 million bbl as refinery rates bump up to 70%. Even with gas prices poised to see further fluctuation in the week ahead, motorists in the region are still saving when they fill-up. 

West Coast

Pump prices in the West Coast region are among the most expensive in the country, with more increases expected as states in the region ease restrictions this week. When compared to a week ago, California (+4 cents) and Nevada (+4 cents) saw the largest increases in the region. Arizona (-1 cent) saw the only decline. Hawaii ($3.17) and California ($2.80) remain the most expensive markets in the country. Washington ($2.45), Oregon ($2.38), Nevada ($2.35), Arizona ($2.07) and Alaska ($2.05) follow.

According to EIA’s latest weekly report, total gas stocks in the region decreased from 31.2 million bbl to 30.8 million bbl last week. As more motorists take to the roads in the region this week, gas demand is expected to continue to grow. Higher gas demand, amid falling gas stocks, will likely lead pump prices to increase this week.  

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI increased by $1.87 cents to settle at $29.43 per barrel. Crude prices increased last week amid growing market optimism that crude demand continues to rebound as more states re-open and demand for gasoline has grown in recent weeks. For this week, crude prices may continue to rise if the market believes that the 9.7 million b/d production reduction agreement for May and June 2020 between the Organization of the Petroleum Exporting Countries and other major crude exporters, including Russia, is helping to rebalance the global oil market as demand remains low due to COVID-19. 

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: Demand Destruction Reigns Supreme as Pump Prices Push Cheaper

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No Immediate Impact to Pump Prices Expected with OPEC+ Historic Global Reduction Announcement

The national gas price average has steadily declined for seven weeks, pushing the average cheaper by 61-cents to $1.86 today. During this timeframe (since late February), U.S. demand for gasoline has decreased 44% to 5 million b/d as gasoline inventories build across the country.

“We are seeing fast and furious gasoline demand destruction. The latest data reveals demand levels not seen since spring of 1968,” said Jeanette Casselano, AAA spokesperson. “Every U.S. region is seeing builds in gasoline inventories and crude storage, which is just driving pump prices even cheaper.”

On Sunday, the Organization of the Petroleum Exporting Countries plus (OPEC+), led by Saudi Arabia, announced historic global crude productions cuts – nearly 10 million b/d in May and June.

“While the production cut is historic, it’s likely to not have an immediate impact on pump prices given the ongoing impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand,” added Casselano.

At $1.86, today’s national average is 6-cents less than last week, 44-cents cheaper than a month ago and nearly $1 less than a year ago.

Quick Stats

  • The nation’s top 10 largest weekly decreases are: Alaska (-19 cents), Idaho (-17 cents), Wisconsin (-13 cents), Iowa (-11 cents), South Dakota (-11 cents), Arkansas (-11 cents), Wyoming (-11 cents), Minnesota (-10 cents), Utah (-10 cents) and Oregon (-9 cents).
  • The nation’s top 10 least expensive markets are: Wisconsin ($1.30), Oklahoma ($1.40), Ohio ($1.46), Kentucky ($1.51), Michigan ($1.52), Arkansas ($1.53), Indiana ($1.54), Iowa ($1.55), Mississippi ($1.57) and Missouri ($1.58).  

Great Lakes and Central States

Motorists in Michigan and Minnesota are seeing significant savings at the pump on the week, month and year. Both states land on the respective top 10 lists for biggest changes in the country:

State Weekly Difference Monthly Difference Yearly Difference
Wisconsin -13 cents -85 cents -$1.50
Minnesota -10 cents -52 cents -$1.04

With this week’s pump price declines, Illinois ($1.88) is in the only state in the region with an average more than $1.75/gallon. Wisconsin ($1.30) carries the cheapest average in the region and country.

Regional gasoline stocks measure at 60.5 million bbl – the highest levels in 14 months. The Energy Information Administration (EIA) reports for the week ending April 3, stocks built by 2.6 million bbl. Gas prices will continue to push cheaper in the week ahead even with a number of regional refiners announcing cuts to combat declining demand.

South and Southeast

Florida ($1.84) is the only South and Southeast state with an overage more than $1.75/gallon. Oklahoma ($1.40), Arkansas ($1.53) and Mississippi ($1.57) carry the cheapest averages in the region and land on the top 10 list of states with the lowest averages. On the week, states in the region saw pump price declines for 4 to 11 cents.

Compared to a year ago, motorist in the South and Southeast are seeing significant savings – some pennies away from or more than $1/gallon: Oklahoma (-$1.20), Arkansas (-98 cents), Texas (-97 cents), Tennessee (-97 cents) and Georgia (-97 cents).

The EIA’s latest report shows regional gasoline stock levels at nearly 82 million bbl. That is a nearly 4 million bbl year-over-year surplus during a season that typically sees high volumes of demand. Late last week there was an explosion and fire at Valero’s 135,000 b/d in Meraux, Louisiana. The extent of the damage is unclear, but this type of event would typically put some pressure on local or state prices. However, given the current environment, any loss of production is likely to not have an impact at pumps.

Mid-Atlantic and Northeast

Mid-Atlantic and Northeast states are seeing gas prices decrease, but at a slower rate as compared to neighbors in the South and Mid-West. On the week, these states saw the largest declines in the region: Washington, D.C (-8 cents), Vermont (-6 cents), Connecticut (-6 cents), Rhode Island (-6 cents) and West Virginia (-6 cents). Gas prices now range from as cheap as $1.71 in North Carolina to as expensive as $2.25 in New York.

On the month, motorists in the Mid-Atlantic and Northeast states are seeing a savings at the pump between 27 to 49 cents. Vermont (-49 cents) and Maine (-45 cents) have the largest month-over-month difference.

Gasoline stocks continue to build in the region according to the latest EIA data. For the second week stocks saw a significant increase. This time 4.6 million bbl to push total levels to 70.5 million bbl – which is the highest level recorded by the EIA for the region in decades. As motorists in the region continue to stay at home, especially with the Center for Disease Control urging residents of New York, New Jersey, and Connecticut to refrain from non-essential domestic travel, the region can expect to see  pump prices push cheaper as stocks to continue to increase.

Rockies

Three states in the Rockies region now have averages less than $2/gallon: Wyoming ($1.98), Montana ($1.90) and Colorado ($1.85). With a 17 cent decrease on the week, Idaho ($2.02) is close to joining the sub-par $2/gallon list. The state also saw the largest decrease in the region and the second largest in the country. Motorists in Utah ($2.17) are seeing gas prices decline, just not as fast as neighboring states.

For a second week, gasoline stocks increased. Total levels are now at a very health 9.4 million bbl – one of the highest measures on record. Stocks built as people are staying at home. Which is a reason regional refinery utilization is down to 71%, an unusually low rate reported by the EIA. Gas prices will continue to push cheaper, but the rate could slow at which they are decreasing.

West Coast

The West Coast region is seeing significant decreases despite carrying some of the most expensive averages in the country. On the week, Alaska (-19 cents) saw the largest decline in the region and the country. Hawaii ($3.24) and California ($2.87) remain the most expensive markets in the country. Washington ($2.59), Oregon ($2.54), Nevada ($2.45), Alaska ($2.21) and Arizona ($2.28) follow.

According to EIA’s latest weekly report, total gas stocks in the region increased from 34.06 million bbl to 34.9 million bbl last week. The increase in supply, alongside low crude prices and demand, will likely help to push pump prices lower in the region this week.

Oil Market Dynamics

At the end of Thursday’s formal trading session, WTI decreased by $2.33 to settle at $22.76 per barrel. Crude prices were volatile last week, during the run-up to OPEC’s historic agreement with its allies, including Russia. The group met to discuss global crude production cuts of up to 9.7 million b/d for May and June 2020. Under the new production reduction agreement, OPEC and its allies expect total global oil cuts to amount to more than 20 million b/d or 20 percent of global supply. Effective May 1, the production cuts are expected to ease in June, but some restrictions will remain in place through April 2022.

Crude prices will likely remain volatile this week, as the market assesses if the production cuts are sufficient to hold back growing global crude inventories as COVID-19 continues to push down demand.

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: Two-Thirds of All States See Double-Digit Pump Price Drop on the Week

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Eleven States Have Gas Price Average of $2/Gallon or Less

As crude oil prices trend close to $30/bbl, Americans are seeing pump prices plummet across the country. On the week, gas price averages in 35 states decreased by double-digits, pushing the national average to $2.25, the cheapest price point of the year.

“The national gas price average is 13 cents cheaper on the week and nearly 20 cents less than the beginning of the month. These are significant decreases in just 7 and 16 days,” said Jeanette Casselano, AAA spokesperson. “AAA expects gas prices to continue trending cheaper, with the high likelihood of the national average hitting $2/gallon before the end of March.”

During this uncertain time of COVID-19, gas prices are declining despite increasing gasoline demand and decreasing U.S. stock levels.

Quick Stats

  • The nation’s top 10 largest weekly decreases are: Ohio (-27 cents), Kentucky (-21 cents), Michigan (-21 cents), Wisconsin (-21 cents), Indiana (-19 cents), Illinois (-19 cents), Oklahoma (-15 cents), Iowa (-15 cents), Maine (-15 cents) and Minnesota (-15 cents).  
  • The nation’s top 10 least expensive markets are: Oklahoma ($1.92), Texas ($1.96), Mississippi ($1.96), South Carolina ($1.97), Ohio ($1.97), Indiana ($1.97), Missouri ($1.98), Kentucky ($1.99), Louisiana ($2.00) and Alabama ($2.00).  

Great Lakes and Central States

Some of the largest weekly pump price savings in the country can be found in the Great Lakes and Central states. Eight out of the top 10 largest weekly decreases are states from the region: Ohio (-27 cents), Kentucky (-21 cents), Michigan (-21 cents), Wisconsin (-21 cents), Indiana (-19 cents), Illinois (-19 cents), Iowa (-15 cents) and Minnesota (-15 cents). All states in the region saw double-digit decreases, with South Dakota (-10 cents) seeing the smallest decrease on the week.

With the substantial drops at the pump, state gas prices in the region are relatively cheap, ranging from as low as $1.98 in Missouri to a high of $2.30 in Illinois.

With a draw of 1.8 million bbl, the Great Lakes and Central states region saw its first substantial drop in gasoline stocks in two months, according to the Energy Information Administration’s latest report. At 58 million bbl, stock levels remain healthy and in line with levels this time last year. If stocks were to decrease again in the coming week that would traditionally mean a pump price increase, but given current trends it’s more likely gas prices would decrease.

South and Southeast

Four states in the South and Southeast region have a gas price average below $2/gallon: Oklahoma ($1.92), Texas ($1.96), Mississippi ($1.96) and South Carolina ($1.97). It’s likely other states in the region will fall below the two dollar price point in the coming week, including: Louisiana ($2.00), Alabama ($2.00), Arkansas ($2.01), Tennessee ($2.03) and Georgia ($2.07). At $2.16, New Mexico and Florida carry the most expensive state averages in the region.

State gas price averages in the South and Southeast are 10 to 15 cents cheaper on the week. Oklahoma (-15 cents) saw the largest decline in the region and ranks among the top 10 states with the biggest pump price change in the last seven days.

Gasoline stocks saw another week of substantial draw, this time 3.7 million bbl. The EIA reports that with the latest draw, total regional stock levels measure at 83 million bbl – the lowest level seen since the end of December last year. Year-over-year, regional stocks are sitting at a 4 million bbl deficit. Typically this could push gas prices more expensive, but its likely motorists in the region will see cheaper gas prices in the week ahead due to market uncertainties associated with the coronavirus.

Mid-Atlantic and Northeast

On the week, motorists in the Mid-Atlantic and Northeast region saw average declines of 6 to 15 cents. Maine ($2.21) saw the biggest weekly difference of any state in the region.

State gas price averages are $2.50 or less for every state in the region. New York ($2.48), Washington, D.C. ($2.47) and Pennsylvania ($2.46) carry the highest averages in the region while North Carolina ($2.07) and Virginia ($2.06) have the cheapest regional averages.

Gasoline stocks built by 400,000 bbl, bumping total regional stock levels to nearly 64 million bbl. More positive news for the region was revealed in EIA’s latest report: refinery utilization increased for the first time since early January, up almost three percentage points to nearly 59%. In the coming week, regional gas prices are likely to follow the national trend of pushing cheaper. 

Rockies

Three Rockies states land on the top 10 list of states with the smallest weekly change: Utah (-1 cent), Idaho (-2 cents) and Wyoming (-3 cents). Montana (-8 cents) and Colorado (-11 cents) saw more significant pump price drops.  Regional gas price averages range from as cheap as $2.18 in Colorado to $2.53 in Idaho.

Stocks dipped slight by 140,000 bbl to 9.1 million bbl. Compared to last year at this time, EIA data shows that current regional stock levels are at a 1.8 million bbl surplus. This healthy difference will likely keep state gas price averages declining in the week ahead, though potentially only by a few pennies for most of the region.

West Coast

Like the rest of the country, pump prices in the West Coast region have declined and are poised to continue their descent this week, as crude prices remain low. When compared to a week ago, California (-10 cents) saw the largest decline. Hawaii ($3.52) and California ($3.34) remain the most expensive markets in the country. Washington ($3.02), Oregon ($2.92), Alaska ($2.86), Nevada ($2.82) and Arizona ($2.67) follow.

According to EIA’s latest weekly report, total gas stocks in the region increased slightly from 31.41 million bbl to 31.64 million bbl, which is 1.14 million bbl lower than the level at this time in 2019. Pump prices are likely to continue decreasing this week, barring any supply challenges.

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 23 cents to settle at $31.73. Fears about COVID-19 and the crude price war between Russia and Saudi Arabia pushed crude prices lower last week. After President Trump announced that the U.S. Department of Energy would purchase oil to top off the Strategic Petroleum Reserve, crude prices rallied briefly. However, the announcement is unlikely to help increase crude prices further since the limited number of barrels the U.S. could purchase is small when compared to the dramatic reduction in global crude demand as a result of reduced economic activity due to COVID-19. Moving into this week, crude prices are likely to continue decreasing as the world grapples with how to contain the ongoing international public health crisis and associated economic challenges that could lead to a global recession. Until the price war ends and fears about COVID-19 subside, domestic crude prices are likely to remain low.

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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NAPA Know How: Car Questions You’re Scared to AskNAPA Know How Blog

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In most aspects of life, knowledge is power; this is especially true when it comes to your car. Having insight into how your vehicle works plays a part in keeping you safe on the road, and it can help you handle any car troubles without breaking a sweat.

Asking the right car questions can provide you with some valuable automotive know-how. Still, many people new to owning or caring for a vehicle shy away from asking questions for fear of looking uninformed. If you’re one of those folks, you’re in luck! Here are the answers to four car questions you may have been scared to ask.

What happens if I use gas with a lower octane level than my car’s manufacturer recommends?

When it comes to your car’s fuel, there are two words to watch for in the owner’s manual: “required” and “recommended.” If a specific octane is “required,” always choose that octane when getting gas. Failure to do so could damage the engine.

However, if the manual “recommends” a specific octane, you have more wiggle room. Using a gas with a lower octane than the one recommended by the automaker every once in a while shouldn’t cause any problems. Still, don’t make this a regular practice. Octane ratings impact an engine’s performance and fuel economy. To get the best possible performance and gas mileage, stick with the octane recommended in the owner’s manual.

How often should I check the air in my tires?

Some experts recommend that you check your tire pressure every time you put gas in your car. Not everyone will have the time to do this, but it’s a good rule to follow. At the very least, check your tire pressure once a month. Keeping your tires properly inflated helps to optimize your car’s fuel economy and handling.

How often should I change my car’s timing belt?

Your car’s timing belt plays an important role in the way your vehicle runs. It controls and synchronizes the pistons and valves in a car’s combustion engine. Deterioration of the timing belt can happen suddenly, causing unsafe driving conditions if it happens while you’re behind the wheel. For this reason, it’s advisable to replace the belt according to recommendations given by your mechanic or your vehicle’s owner’s manual. Newer cars can go for up to 100,000 miles without needing a new timing belt, while older vehicles may need a replacement after about 60,000 miles.

How often should I change my car’s air filter?

The air filter keeps sand and other debris from entering your car’s engine. In doing so, it prevents engine damage and extends its life. Typically, it’s recommended that you replace the air filter every 15,000 to 30,000 miles. However, you may need to replace the filter more frequently if your car has a turbocharged engine or if you regularly drive on unpaved roads.

These tips will help you get up to speed on issues related to automotive care and maintenance. Having access to basic car knowledge and advice makes owning a car a lot less stressful.

Check out all the filters and related products available on NAPA Online or trust one of our 17,000 NAPA AutoCare locations for routine maintenance and repairs. For more answers to common car questions, chat with a knowledgeable expert at your local NAPA AUTO PARTS store.

Photo courtesy of Pixabay.

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AAA Newsroom: Record Number of Holiday Motorists Expected Across the Country this Week

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More than 100 million Americans are taking to the roadways to travel for the holidays, but that hasn’t had a large impact on gas prices. At the start of the work week, only about a dozen states are seeing more expensive gas prices with increases of less than a dime.

“AAA forecasts that 104 million Americans will travel by car – the most on record – for a year-end holiday,” said Jeanette Casselano, AAA spokesperson. “The substantial number of motorists has caused some state averages to increase heading into the holiday week, but these jumps aren’t big and won’t last long or linger past the holiday season.”

Today’s national average is $2.54, which is a penny less than last week and a nickel cheaper than last month. While the national gas price average continues to slowly edge cheaper, it is noticeably more expensive as compared to last year’s holidays – by nearly 20 cents. However, this isn’t deterring people from taking their holiday road trips and some states are seeing lower averages than last year.

Quick Stats

• The nation’s top 10 least expensive markets are: Missouri ($2.19), Mississippi ($2.21), Texas ($2.22), Oklahoma ($2.22), Louisiana ($2.23), Arkansas ($2.25), Kansas ($2.26), Alabama ($2.26), South Carolina ($2.28) and Tennessee ($2.31). 

• The nation’s top 10 largest weekly changes are: Kentucky (+9 cents), Idaho (-9 cents), Nevada (-8 cents), North Carolina (+5 cents), Illinois (-5 cents), Utah (-5 cents), Nebraska (+4 cents), Indiana (+4 cents), Colorado (-4 cents) and California (-3 cents).

Great Lakes and Central States

Four Great Lakes and Central States land on the top 10 list for largest weekly changes, but for increases and decreases alike: Kentucky (+9 cents), Illinois (-5 cents), Nebraska (+4 cents) and Indiana (+4 cents). The three states with large jumps are exceptions for  the region. Filling up continues to be less expensive for the majority of motorists in the region thanks to mostly increasing stock levels since the beginning of November. 

While regional prices are mostly cheaper on the week, they range from 18 cents to 47 cents more expensive compared to this time last year. This is likely due to higher winter crude oil prices. 

The Energy Information Admiration’s (EIA) latest data shows that stocks built by 1.4 million bbl to total 51.6 million bbl. Currently, regional stocks sit at their highest level since early September, which is helping the majority of the region see cheaper weekly gas prices. 

Mid-Atlantic and Northeast

Motorists across the Mid-Atlantic and Northeast states are seeing mostly more expensive gas prices at the start of the holiday week: North Carolina (+5 cents), Maryland (+2 cents), New Jersey (+2 cents), Virginia (+2 cents), Delaware (+2 cents), West Virginia (+2 cents), New York (+1 cent), New Hampshire (+1 cent), Maine (+1 cent) and Connecticut (+1 cent). Increases are incremental and likely due to the substantial amount of holiday motorists – 16 million in the Northeast – expected to travel this week.

In the region, Pennsylvania ($2.75) carries the most expensive state gas price average and lands on the top 10 list of most expensive averages in the country. 

EIA data shows that regional gasoline stocks built, but by a marginal 600,000 bbl, to total 62.9 million bbl. In the same timeframe, regional refinery rates increased, though only by 1%. Gas prices are likely to see some fluctuation in the week ahead, but any increases are not expected to be large spikes or to linger for very long.

South and Southeast

Motorists traveling through the South and Southeast during the holidays will find some of the cheapest state gas prices in the country, ranging from $2.19 – $2.41. Drivers in the region are starting the work week with gas prices slightly more or less expensive, but only by a few pennies. Florida (-4 cents) and New Mexico (-3 cents) saw the largest declines while Tennessee (+2 cents) saw the largest increase. 

Pump prices saw mostly minimal movement as did gasoline stocks and regional refinery rates. EIA data shows stock levels maintained at a healthy 83.4 million bbl, which includes a marginal 24,000 bbl weekly build. Regional refinery rates dipped slightly, down 2%, to 91%. Despite these small jumps, motorists can expect gas prices to edge cheaper following the holidays. 

West Coast

Pump prices in the region continue to decline, with allstates seeing their averages less expensive this winter compared to last year. On the week, Nevada (-8 cents) saw the largest decreases in the region. Hawaii ($3.65) and California ($3.59) remain the most expensive markets in the country. Washington ($3.18), Nevada ($3.06), Oregon ($3.05), Alaska ($3.03) and Arizona ($2.85) follow.

Increased gasoline stocks continue to help put downward pressure on pump prices, even as demand remains robust. According to EIA’s report for the week ending on December 13, total gas stocks in the region grew by approximately 500,000 bbl, bringing the total to 31.63million bbl. The current supply level is 4.08 million bblhigher than last year’s level at this time, which will likely continue to help prices in the region decline throughout the week.

Rockies

Rockies states are seeing some of the largest weekly decreases in the country with Idaho (-9 cents), Utah (-5cents), and Colorado (-4 cents) landing this week’s top 10 list. Pump prices in Montana and Wyoming also edged cheaper during the last seven days.

In the region, state averages range from $2.61 – $2.75, which are very similar to prices last year at this time. This is true for all Rockies states with the exception of Colorado whose average is 36 cents more expensive than this time last year. In Colorado, this year-over-year difference is likely related to more expensive year-end crude oil prices. 

The EIA’s latest report shows gasoline stocks higher on the week, jumping to 7.6 million bbl as refinery utilization increased by 4%, to 96%. This winning combination means motorists in the region will see gas prices push even cheaper through the year-end. 

Oil Market Dynamics 

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by 74 cents to settle at $60.44. Crude prices ended the week up slightly over the previous week amid increased optimism that trade tensions are continuing to decline between the U.S and China — the world’s two largest crude oil consumers. This hope has reduced market concerns that global crude demand will decrease next year, helping to raise price expectations for early 2020.

Crude prices also increased this week after EIA’s recent petroleum status report revealed that total domestic crude stocks decreased by 1.1 million bbl to 446.8 million bbl last week. Total domestic stocks are 5.4 million bbl higher than where they were at this time in 2018.

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: Thanksgiving Holiday Week Gas Prices Poised to be Similar to or Cheaper Than Last Year for Majority of Travelers

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For the 49 million Americans hitting the road for the Thanksgiving holiday, they will find gas prices mostly similar, if not cheaper, than last year’s holiday. Today’s national average is $2.59. That is just a few cents over the 2018 holiday weekend average of $2.57.  

“During Thanksgiving week last year we saw the national gas price average decrease a nickel between Monday and Thursday, that could be the case again this year,” said Jeanette Casselano, AAA spokesperson. “AAA recommends holiday road-trippers use the AAA app to find current gas prices along their route.”

Today, 61% of all gas stations in the country are selling regular unleaded for $2.50 or less. On the week, gas prices are flat.

Quick Stats

  • The nation’s top 10 least expensive markets are: Louisiana ($2.21), Mississippi ($2.22), Texas ($2.25), Missouri ($2.25), Alabama ($2.27), Oklahoma ($2.28), South Carolina ($2.28), Arkansas ($2.29), Tennessee ($2.30) and Virginia ($2.31).
  • The nation’s top 10 largest weekly changes are: Ohio (-12 cents), California (-9 cents), Michigan (+8 cents), Oregon (-5 cents), Alaska (-5 cents), Nevada (-5 cents), Washington (-4 cents), Pennsylvania (+4 cents), Utah (+4 cents) and Missouri (-3 cents).

Mid-Atlantic and Northeast

States in the Mid-Atlantic and Northeast region carry some of the largest year-over-year gas price savings with six state averages at least a dime cheaper than last Thanksgiving week. This includes: Connecticut (-19 cents), Rhode Island (-17 cents), New York (-15 cents), Vermont (-14 cents), New Hampshire (-15 cents) and Washington, D.C. (-11 cents). However, motorists filling up in Delaware (+12 cents), Maryland (+5 cents) and Pennsylvania (+3 cents) are paying more than this time last year.

On the week, gas prices are relatively flat with most states seeing gas prices decrease a few cents. Pennsylvania (+4 cents) and Virginia (+1 cent) were the only states to see pump prices increase.

Motorists could see some small increases at the pump as we get closer to Thanksgiving and heavy travel times. An increase could also be the result of decreasing stocks in the region. The latest Energy Information Administration (EIA) report shows a draw of 1.78 million bbl which brings the current total stock to 58.3 million bbl.

Great Lakes and Central States

Gas prices are more expensive compared to this time last year for 9 of the 13 Great Lakes and Central states, with these four state averages a dime or more higher: Illinois (+16 cents), Ohio (+16 cents), Indiana (+15 cents) and Michigan (+11 cents). Four other states have more expensive prices, but not in the double-digits: Kentucky (+8 cents), Iowa (+7 cents), Missouri (+7 cents), Nebraska (+6 cents) and Kansas (+4 cents).

On the week the majority of states saw a decrease or no change in gas prices. This was due to gasoline stocks holding steady at 46.4 million bbl and a one percent increase in regional refinery utilization. However, two states did see prices increase on the week: Michigan (+9 cents) and Wisconsin (+2 cents). If refinery rates increase to help build stocks, most motorists in the region could expect gas prices to be cheaper through year-end.

South and Southeast

Heading into the holiday weekend, states in the South and Southeast tout the cheapest gas prices in the country, including the top 8 of the 10 least expensive averages in the country: Louisiana ($2.21), Mississippi ($2.22), Texas ($2.25), Alabama ($2.27), South Carolina ($2.28), Oklahoma ($2.28), Arkansas ($2.29) and Tennessee ($2.30). New Mexico ($2.50) carries the most expensive average in the region.

Oklahoma (+6 cents), South Carolina (+4 cents), Georgia (+4 cents) and Texas (+1 cent) are the only states in the South and Southeast with gas prices more expensive than a year ago. The other seven states carry cheaper year-over-year gas price averages between one and six cents. 

With a 2.1 million bbl increase, regional gasoline stocks sit at a healthy 80.6 million bbl. The build was aided by a 3% increase in regional refinery utilization. The EIA has not measured stock levels or regional refinery rates at these high levels for the South and Southeast region since early October and end of September, respectively. This combination should cause gas prices to decrease following the Thanksgiving holiday.

West Coast

Pump prices are continuing to decline in the region after prices spiked due to planned and unplanned refinery maintenance over the past month. Increased gasoline stocks have helped to put downward pressure on pump prices, as demand remains robust. According to EIA’s report for the week ending on November 15, gas stocks in the region grew by a hefty 1.9 million bbl, bringing the total to 28.49 million bbl. The current supply level is 1.6 million bbl higher than last year’s level at this time, which should continue to help prices decline ahead of the busy Thanksgiving holiday.

California ($3.86) and Hawaii ($3.65) are the most expensive markets in the country. Washington ($3.34), Nevada ($3.30), Oregon ($3.21), Alaska ($3.14) and Arizona ($2.92) follow. All averages have declined on the week in the region, with California (-9 cents) seeing the largest drop.

Rockies

Filling-up in the Rockies states during the Thanksgiving holiday will be more expensive for some motorists while others will be paying less for gas than they did at this time last year. State gas price averages rank between the 7th and 13th highest in the country. Two states are within a nickel or less of hitting $3/gal: Idaho ($2.97), Utah ($2.95), Colorado ($2.79), Wyoming ($2.73) and Montana ($2.69).

Compared to last year’s holiday, Colorado (+12 cent) and Utah (+3 cents) have more expensive averages. Meanwhile motorists in Montana (-17 cents) and Wyoming (-14 cents) are paying a lot less than last year. Idaho’s average is consistent with a year ago.

Gas prices are likely only to see minimal fluctuation in the week ahead. The latest EIA data shows stock levels at 6.9 million bbl, which is a healthy level for the region at this time of year.

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by 81 cents to settle at $57.77. However, crude prices increased slightly in recent reports (about a nickel) due to reports that the Organization of the Petroleum Exporting Countries (OPEC) and its partners are likely to extend their current production reduction agreement through the middle of 2020 at OPEC’s meeting in Vienna on December 5 – 6. Price gains were limited by continued market fear that the trade war between China and the U.S. – the world’s two largest crude consumers – will reduce crude demand moving into next year. If trade tensions increase this week, crude prices could decrease further.

In related news, EIA’s weekly report showed that total domestic crude inventories increased by 1.4 million bbl last week, bringing the new total to 450.4 million bbl. The current level is 3.5 million bbl higher than last year’s level at this same time. 

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: Pump Prices are a Treat for Majority of Motorists

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The national gas price average dropped by four cents on the week to $2.60, despite a jump in gasoline demand and a draw in gasoline stocks. That is the largest one-week decrease since gas prices started to increase more than six weeks ago. Today’s average is a nickel cheaper than last month and 21-cents cheaper than last year at this time.

“On the week, more than half of all states saw gas prices decrease,” said Jeanette Casselano, AAA spokesperson. “A handful of Great Lakes and Central states saw the largest declines at the pump, while pump prices primarily increased in the West Coast and Rockies regions.”

Refinery maintenance across the country continues, though utilization rates have increased in the last week. This could mean further declines to the national average in the weeks ahead if demand drops. 

Quick Stats

  • The nation’s top 10 largest weekly changes are: Indiana (-14 cents), Ohio (-14 cents), Michigan (-14 cents), Kentucky (-11 cents), California (-8 cents), Florida (-7 cents), Alaska (+7 cents), Nevada (-6 cents), Illinois (-6 cents) and Wisconsin (-5 cents).
  • The nation’s top 10 least expensive markets are: Louisiana ($2.23), Mississippi ($2.24), Texas ($2.25), Alabama ($2.27), South Carolina ($2.27), Missouri ($2.28), Arkansas ($2.29), Oklahoma ($2.29), Virginia ($2.29) and Tennessee ($2.30).

West Coast

Pump prices in the West Coast region continue to fluctuate after a number of refineries in the region underwent planned and unplanned maintenance over the past few weeks. This includes the Olympic Pipeline, which can transport 300,000 b/d of refined products in the region. The pipeline reduced its capacity to undergo unplanned work last week. The pipeline is expected to operate at reduced capacity this week, which will likely put pressure on tight supplies in the region and cause prices to remain high. Additionally, regional power cuts may take some gas stations offline in areas impacted by the fires in California, potentially putting pressure on pump prices.

California ($4.06) and Hawaii ($3.66) are the most expensive markets in the country. Nevada ($3.38), Washington ($3.42), Oregon ($3.34), Alaska ($3.14) and Arizona ($2.90) follow. California (-8 cents) and Nevada (-6 cents) saw the largest decreases, while Alaska (+7 cent) saw the largest increase on the week.

The Energy Information Administration (EIA) report for the week ending Oct. 18 showed that total West Coast gasoline stocks mostly held steady from 26.23 million bbl to 26.25 million bbl. The current level is approximately 700,000 bbl lower than this same time last year. Tighter supplies will continue to keep prices high this week, but as refineries resume normal gasoline production levels and imports enter the region, pump prices are expected to continue stabilizing.

Great Lakes and Central States

Four Great Lakes and Central states top the charts for the largest weekly decreases in the country: Indiana (-14 cents), Ohio (-14 cents), Michigan (-14 cents) and Kentucky   (-11 cents). Illinois (-6 cents) and Wisconsin (-5 cents) round out the top 10 list. All states in the region have cheaper week-over-week averages with state averages ranging from $2.89 to $2.63.

Across the region, state averages are cheaper on the week, month and year. Motorists in this region have the largest savings compared to last year. Pump prices range, on average, from 18 to 36 cents cheaper. On the month, pump prices are a nickel to 14 cents less.

Stocks drew by 2 million bbl in EIA’s latest report for the week ending Oct.18. At 48.5 million bbl, gasoline stocks sit at their lowest level since this past June, but are on par with levels from this time last year. The latest refinery utilization rate was recorded at 84%, the second lowest in the country. Motorists are likely to see typical volatility at the pump into early November as regional refineries undergo maintenance.

South and Southeast

While all state gas price averages in the South and Southeast are cheaper on the week, motorists in the region are finding the real cost savings compared to last year. Three states in the region land on the top 10 list for largest yearly change: Louisiana (-32 cents), Florida (-31 cents) and Georgia (-30 cents). At a quarter less, South Carolina has the lowest year-over-year difference.

In the region, gas prices range from $2.23 to $2.39. Florida and Georgia have the highest and same pump price. Eight of the 10 cheapest state gas price averages are from the South and Southeast: Louisiana ($2.23), Mississippi ($2.24), Texas ($2.25), Alabama ($2.27), South Carolina ($2.27), Arkansas ($2.29), Oklahoma ($2.29) and Tennessee ($2.30).

Gasoline stocks drew by less than a half million bbl on the week to now measure at 78.6 million bbl. Meanwhile, regional refinery utilization jumped up from 84.5% to 88%. In the week ahead, motorists are likely to see stable or cheaper gas prices.

Mid-Atlantic and Northeast

Motorists in the Mid-Atlantic and Northeast states saw the smallest decreases in gas prices on the week of any region in the country. At most, pump prices only dropped three cents and only in three states: North Carolina ($2.39), Delaware ($2.35) and Virginia ($2.29). Most states in the region saw prices decrease by one to two cents or not drop at all. Washington, D.C. (+1 cent) was the outlier.

Compared to last year, Connecticut (-32 cents), Rhode Island (-32 cents) and New Hampshire (-31 cents) are among the top 10 states with the largest pump price difference. At 16-cents, Delaware has the smallest yearly change in pump prices. State gas prices averages in the Mid-Atlantic and Northeast region are also cheaper month-over-month, except in Washington, D.C. (+1 cent).

Gasoline stocks sit at 62.3 million bbl following a draw of 550,000 bbl in EIA’s latest data. Regional refinery utilization pushed up a percentage point to 60%. The relatively marginal week-over-week changes helped to keep fluctuations minimal. Despite sitting at a 5 million bbl gasoline deficit compared to last year at this time, the region is likely to see gas prices push cheaper or stabilize through early November.

Rockies

For a second week, Idaho (+4 cents) saw the largest weekly increase in the region followed by Utah (+3 cents). Colorado, Wyoming and Montana all saw pump prices increase by a penny. With these jumps, these three states land on the top 10 list of most expensive state averages: Idaho ($2.88), Utah ($2.77) and Colorado ($2.75). Montana ($2.71) and Wyoming ($2.69) rank as the 12th and 14th most expensive states, respectively.

Gasoline stocks declined by a marginal 120,000 bbl. Total stocks sit at 7.2 million bb as regional refinery utilization jumped 4% up to 85.6%. Gas prices have the potential to push cheaper in the week ahead if utilization remains high and stocks hold steady.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 43 cents to settle at $56.66. Crude prices increased last week after EIA’s report revealed that total domestic crude inventories fell by 1.7 million bbl to 433.2 million bbl last week. Growth in crude exports, from 3.24 million b/d to 3.68 million b/d helped to push crude inventories lower. When compared to last year at this time, export rates are 1.5 million b/d higher. If total domestic crude inventories decrease again, crude prices could increase.

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: California’s Pump Prices Spike while Majority of Country Pays Less to Fill-Up

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The national gas price average continues to hold steady on the week at $2.65, which is nine cents more expensive than last month, but 26 cents cheaper than a year ago. Most motorists around the country are seeing prices decline or stabilize, with the majority of states seeing gas prices decrease by as much as a nickel since last Monday. But significant price jumps in California (+16 cents on the week) have pushed prices higher for motorists in the region, as gasoline stocks tighten along the West Coast.

“All regions are seeing planned and unplanned refinery maintenance, but it is only the West Coast that is really seeing gasoline stocks tighten and gas prices increase,” said Jeanette Casselano, AAA spokesperson. “On the whole, we are seeing gasoline demand mostly push lower amid stable, but healthy gasoline stock levels which are ultimately keeping prices cheaper for most motorists.”

Today, 51% of all gas stations in the country are selling regular unleaded for $2.50 or less, while 77% are selling for $2.75 or less.

Quick Stats

  • The nation’s top 10 largest weekly changes are: California (+16 cents), Nevada (+14 cents), Indiana (-8 cents), Delaware (-8 cents), Michigan (+6 cents), Oregon (+6 cents), Washington (+5 cents), Georgia (-5 cents), Maryland (-4 cents) and Texas (-4 cents).
  • The nation’s top 10 least expensive markets are: Louisiana ($2.27), South Carolina ($2.28), Mississippi ($2.28), Texas ($2.31), Alabama ($2.31), Arkansas ($2.31), Missouri ($2.32), Virginia ($2.32), Oklahoma ($2.33) and Tennessee ($2.34).

West Coast

Pump prices in the West Coast region have increased on the week, following a number of refinery outages that have tightened supply in the market. However, price increases have slowed as refineries work to resume production capacity. Assuming no additional outages, pump prices should stabilize toward the end of the week. California ($4.18) and Hawaii ($3.67) are the most expensive markets in the country. Nevada ($3.42), Washington ($3.28), Oregon ($3.16), Alaska ($2.95) and Arizona ($2.91) follow. California (+16 cents) saw the largest increase, followed by Nevada (+14 cents).

The Energy Information Administration’s (EIA) report, for the week ending on September 27, showed that total West Coast gasoline stocks decreased slightly from 27.1 million bbl to 27 million bbl. This level is approximately 900,000 bbl lower than this same time last year. Tighter supplies will continue to cause prices to spike, but as refineries resume normal gasoline production levels, pump prices are expected to stabilize.

Rockies

Motorists in the Rockies region continue to see little action at the pump with three state averages down on the week by one or two pennies: Utah ($2.78), Wyoming ($2.69) and Montana ($2.71). Idaho’s ($2.75) average held steady.

Both regional gasoline stocks and refinery utilization were relatively unchanged in EIA’s latest report. Gasoline stocks held at 7.7 million bbl while refinery dipped from 91.3% to 90.9%. The region could see some fluctuation should Rockies refineries be tapped to help back-fill tightening gasoline supplies in the West Coast region. The good news is gasoline stocks in the Rockies sit at the highest level of the year and show a year-over-year surplus, so any fluctuation should not be significant.

Great Lakes and Central States

Pump prices compared to a year ago are 20 cents to 45 cents cheaper for all motorists in the Great Lakes and Central states. Six states land on the top 10 list for largest yearly change: Indiana (-46 cents), Iowa (-45 cents), Nebraska (-39 cents), Kentucky (-39 cents), South Dakota (-39 cents), and Wisconsin (-39 cents).

On the week, all but three states in the region saw gas prices that are cheaper – by as much as four cents – or stable. Michigan (+6 cents), Ohio (+2 cents) and Illinois (+3 cents) were the outliers.

The region was just one of two to see gasoline stocks increase on the week. According to the latest EIA data, stocks built by nearly 1 million bbl to total 51 million bbl as regional refinery utilization held steady at 92%. The region is likely to see gas prices remain mostly stable or cheaper with the exception of typical volatility for a handful of states.

South and Southeast

Florida (+4 cents) was one of a handful of states east of the Mississippi to see gas prices jump on the week. All other states in the South and Southeast continued to see cheaper or stable pump prices with Georgia ($2.49), Texas ($2.31) and South Carolina ($2.28) seeing the largest decline of four cents.

Eight of the top 10 states with the cheapest averages in the country hail from the region: Louisiana ($2.27), South Carolina ($2.28), Mississippi ($2.28), Texas ($2.31), Alabama ($2.31), Arkansas ($2.31), Oklahoma ($2.33), and Tennessee ($2.34). Compared to a year ago, these state averages are at least 30 cents cheaper.

With a 1 million bbl draw, gasoline stocks dipped down to 79.3 million bbl. The drop in stocks can likely be attributed to an increase in exports and a dip in regional refinery utilization, which dropped by 4% to 88% – a regional rate not seen since March. The lower rate is due to planned and unplanned maintenance at refineries. However, with stocks at a healthy level, motorists are unlikely to see large swings at the pump.

Mid-Atlantic and Northeast

For another week, all states in the region saw pump prices push cheaper, with Delaware seeing the largest decline. In fact, Delaware (-8 cents) and Maryland (-4 cents) landed on the list of top-10 largest weekly declines. As state averages continue to decline in the region, not one state ranks among the top 10 most expensive in the country. Pennsylvania ($2.75) and New York ($2.71) rank as the 11th and 13th highest averages in the country and the most expensive in the region. Conversely, Virginia ($2.32) carries the cheapest average in the region.

For a second week, gasoline stocks increased by a moderate nearly 600,000 bbl to total 64.9 million bbl in EIA’s latest report. Regional refinery utilization dropped by another 1% down to 67%. It’s likely that motorists will see gas prices continue to decrease in the week ahead.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 36 cents to settle at $52.81. Crude prices ended lower last week after continued trade tensions between the U.S. and China worried market observers. Those fears grew last week after the World Trade Organization ruled that the U.S. could impose tariffs on goods from the European Union. Increased tariffs could reduce global crude demand, helping to push prices down even further while crude supplies continue to increase. Moving into this week, further trade tensions could reduce crude prices amid worries that global crude demand will decline.

In related news, in its latest weekly report, EIA’s data revealed that total domestic crude inventories grew by 3.1 million bbl. At 422.6 million bbl, crude stocks are 18.7 million bbl higher than where they were at this time last 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: Crude Oil Prices Spike Following Attacks on Saudi Arabian Oil Facilities

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On the week, the national gas price average held steady at $2.56, but motorists can expect some volatility at the pump in the coming days and weeks. Over the weekend, Saudi Arabia experienced drone attacks on two major oil facilities – including the world’s largest, Abqaiq. The attacks have taken 5.7 million (crude) barrels per day off the market, accounting for about 6% of the global supply.

Prior to the attacks, global crude oil supply was very healthy, in fact sitting on a global glut of stocks. Regardless, initial market reaction to the attacks spiked crude oil prices.  At the start of the work week, crude oil (West Texas Intermediate, WTI) is trading for $5/bbl more than on Friday’s closing, up to $61/bbl – a price point for crude not seen since May.

“Americans can expect local pump prices to start to increase this week. The jump could end up being as much as a quarter per gallon throughout this month,” said Jeanette Casselano, AAA spokesperson. “Whether this is a short or long term trend will be determined by the price of crude oil prices and how quickly the facilities in Saudi Arabia can recover and get back online.”

Damage to the facilities is still being accessed, but there is no word if it will be days, weeks or even months before infrastructure is repaired. To ease concerns, President Trump said he has authorized the release of crude from the Strategic Petroleum Reserve. Other Saudi-oil-consuming countries also have emergency reserves to help back-fill the global loss, if needed.

Notably, the U.S. currently depends less on crude imports from Saudi Arabia. The latest Energy Information Administration (EIA) report showed that the U.S. imported the least amount of crude oil from Saudi this decade. In the first half of this year, on average the U.S. imported about 18,000 bbl compared to 35,600 bbl in the first half of 2017.

While U.S. gasoline stock levels have been decreasing the past few weeks, total domestic stocks sit at 228 million bbl, which is ahead of the five-year average for this time of year by several million bbl. Today’s national gas price average is 7 cents cheaper than last month and 28 cents cheaper than this time last year. But these gaps are likely to shrink as the market adjusts to the news and crude oil prices increase.

Quick Stats

  • The nation’s top 10 largest weekly changes are: Ohio (+13 cents), Michigan (-9 cents), Delaware (+9 cents), Illinois (+6 cents), New Mexico (+5 cents), Georgia (+4 cents), Colorado (+4 cents), Utah (-3 cents), Oklahoma (+3 cents) and Louisiana (+3 cents).
  • The nation’s top 10 least expensive markets are: Mississippi ($2.18), Louisiana ($2.20), Alabama ($2.22), South Carolina ($2.22), Arkansas ($2.24), Texas ($2.26), Tennessee ($2.27), Oklahoma ($2.28), Virginia ($2.28) and Missouri ($2.29).

South and Southeast

On the week, motorists in the South and Southeast are seeing volatility, though it is not overly drastic. New Mexico (+5 cents), Georgia (+4 cents), Oklahoma (+3 cents) and Louisiana (+3 cents) rank among the top 10 states with the largest weekly changes. A total of six states saw prices increase between two to five cents since last Monday, while the remaining states saw prices decrease by a few pennies. State averages range from $2.18 to $2.42.

Part of the pump price increases for the six states can be attributed to gasoline stocks, which decreased for a second week. The latest draw was 1.1 million bbl, dropping total levels to 76 million bbl, which is the lowest stock level seen since the end of 2017, according to EIA data. Stocks are likely to continue to decline given the weekend news of the Saudi attack. Falling stocks paired with a likely increase in crude oil prices will likely lead to more expensive gas prices for the region.

Great Lakes and Central States

Pump prices range from as much as 13 cents more expensive to nine cents cheaper in the region on the week. Ohio (+13 cents) and Michigan (-9 cents) saw the biggest weekly changes in the region and the country. Gas prices are noticeably more expensive in Illinois (+6 cents), while Kansas (+2 cents), Missouri (+1 cent), Indiana (+1 cent), Kentucky (+1 cent) and Nebraska are more expensive but just by a couple of pennies.

Gasoline stocks built by a significant 1.6 million bbl in EIA’s latest report. That increases total stocks for the Great Lakes and Central States to 53 million bbl, which is on par with levels this time last year. Regional refinery utilization remains strong at 100%, which should ultimately lead to cheaper gas prices for the region. However, any major jumps in crude oil prices may reverse this trend and lead to more expensive gas prices nationally and in the region.

Mid-Atlantic and Northeast

The majority of the Mid-Atlantic and Northeast states have gas prices that are cheaper or stable compared to last week. Only four states saw upward movement at the pump this week: Delaware (+9 cents), Maryland (+3 cents), Tennessee (+2 cents) and Pennsylvania (+1 cent). With a three cent decrease, Connecticut ($2.68) saw the largest change in pump prices. At the start of the week, New York ($2.72) has the most expensive average of all states in the region and ranks as the 10th most expensive in the country.

Gasoline stocks drew down by a significant 1.4 million bbl, dropping levels to 63.6 million bbl. Stocks in the region have mostly been building as of late, though slowly since July. This is the largest draw seen during this timeframe and measures at a 3.1 million bbl deficit compared to this time last year. It is likely more states will see fluctuation in the week ahead, especially as crude oil increases.

Rockies

Colorado (+3 cents) was the only state in the region to see an increase at the pump this week. Utah (-3 cents) saw the largest decrease followed by Wyoming (-2 cents), Idaho (-1 cent) and Montana (-1 cent). The Rockies region is averaging pump prices at $2.70/gallon.

The region’s stock dropped by 100,000 bbl to measure at 7.4 million bbl in EIA’s latest report. In addition, regional refinery utilization fell from 102% down to 94% signaling that stocks are positioned to further decrease and likely push regional gas prices more expensive.

West Coast

Pump prices in the West Coast region are the highest in the nation, with all states in the region landing on the top 10 most expensive list today. Hawaii ($3.64) and California ($3.63) are the most expensive markets in the country. Washington ($3.18), Nevada ($3.10), Oregon ($3.03), Alaska ($2.95) and Arizona ($2.83) follow. All state averages in the region have marginally decreased on the week. Hawaii, Washington, Nevada and Oregon saw the largest decreases at a penny each.

The EIA’s recent report for the week ending on September 9, showed that total West Coast motor gasoline stocks climbed by 300,000 bbl to 28.7 million bbl. The increase is a reversal from the previous four-week period that saw total stockpiles decrease by about 3.5 million bbl. The stock growth will likely help pump prices continue to decline as motorists in the region enter the lower demand fall driving season this week. However, as with the rest of the nation, increasing crude oil prices are likely to reverse this trend.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by 24 cents to settle at $54.85, but on Monday, the price was up to $61/bbl.

Overall, oil prices were mixed. Early in the week, oil prices fell after reports emerged that the Trump Administration is considering relaxing sanctions on Iran, which would put more oil into an already oversupplied market. However, the losses were tempered by EIA’s weekly report showing that total domestic crude inventories fell by 6.9 million bbl last week. They now sit at 416.1 million bbl, which is nearly 20 million bbl higher than were they were at this same time last year. For this week, crude prices will see increases due to increased tension in the Middle East – specifically stemming from the attacks in Saudi Arabia –  and could be bolstered by increased optimism that China and the U.S., the world’s two largest crude consumers, may be nearing a resolution to the trade war.

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 Report for August 19th, 2019

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Summer may be ending, but gasoline demand is soaring to new heights. In its latest reading (for the week ending Aug. 9), the Energy Information Administration (EIA) recorded demand at 9.93 million b/d, the highest since the agency began recording data in 1991. As demand jumped, gasoline stocks fell by 1.4 million bbl and pump prices slowed their decline on the week.

“Pump prices continue to trend cheaper for most motorists across the country, though the rate at which they are declining slowed in the last week with a handful of states only seeing a nickel decline at the most,” said Jeanette Casselano, AAA spokesperson. “Demand recorded at a surprising all-time high, but it is expected to drop in the coming weeks as summer comes to an unofficial end.”

Today’s national average is $2.61, which is three cents cheaper than last week, 17-cents less than a month ago and 22-cents cheaper than a year ago. Nearly half of all gas stations in the country are selling gas for $2.50 or less.

Quick Stats

  • The nation’s top 10 largest weekly decreases are: North Carolina (-5 cents), Maryland (-5 cents), Georgia (-5 cents), Washington, D.C. (-5 cents), Texas (-5 cents), Missouri (-5 cents), South Carolina (-5 cents), Tennessee (-5 cents), New Jersey (-5 cents) and Virginia (-5 cents).
  • The nation’s top 10 least expensive markets are: Louisiana ($2.23), Mississippi ($2.24), South Carolina ($2.26), Alabama ($2.27), Arkansas ($2.29), Oklahoma ($2.30), Tennessee ($2.32), Texas ($2.33), Missouri ($2.34) and Kansas ($2.36).

South and Southeast

States in the South and Southeast carry among the cheapest gas prices in the country and some saw large declines on the week. Three state averages decreased by a nickel and land on the top10 list of states with the largest weekly decreases in the country: Georgia ($2.46), Texas ($2.33) and South Carolina ($2.26).

Motorists in the region are enjoying savings at the pump compared to last year at this time. Ten South and Southeast states have gas price averages that are a quarter or more less expensive: Louisiana (-37 cents), Florida (-35 cents), Mississippi (-31 cents), Oklahoma (-30 cents), Arkansas (-28 cents), South Carolina (-27 cents), Alabama (-27 cents), New Mexico (-27 cents), Texas (-27 cents) and Georgia (-26 cents).

The region’s refinery utilization rate (96%) and gasoline stock levels (84 million bbl) both held steady from the previous week according to the latest EIA data. Stock levels have been mostly increasing since mid-July and sit at a 4.2 million bbl surplus compared to this time last year. This likely means continued pump price decreases heading into September.

Great Lakes and Central States

The majority of motorists in the Great Lakes and Central states saw gas prices decrease on the week. However, Michigan (+6 cents) and Ohio (+2 cents) are the region’s and country’s outliers, being the only two states to see increases. This follows significant double-digit decreases each state saw the week prior: Ohio (-19 cents) and Michigan (-12 cents). However, this is not unordinary behavior in a region with high volatility.

All states in the region have gas price averages that are double-digits cheaper than a month ago. At a quarter or more cheaper, Illinois (-32 cents), Indiana (-26 cents) and Kentucky (-25 cents) tout the largest monthly decreases in the country.

Gasoline stocks remain at a healthy 50.1 million bbl. In the week ahead, gas prices may see little movement at the pump if gas stocks continue to hold steady. Regional refinery utilization remains strong with the EIA reporting a rate of 99% in their latest report. 

Mid-Atlantic and Northeast

In the Mid-Atlantic and Northeast region, gas prices are as much as a nickel cheaper than last week. North Carolina ($2.43), Maryland ($2.53), Washington, D.C. ($2.77), Tennessee ($2.32), New Jersey ($2.68) and Virginia ($2.37) rank among the top 10 states with the largest weekly decreases in the county and all saw gas prices drop by a nickel.

At the start of the workweek, state gas price averages in the region range between $2.81 and $2.32.

Regional gasoline stocks saw a nearly half a million bbl build despite refinery utilization declining for a third straight week, down 4% to 70%, per EIA data. Gas prices are decreasing among stable stocks and utilization thanks to imports backfilling supply since the largest refinery on the East Coast will be shutting down in the near future.

Rockies

Gas prices in the Rockies saw modest movement  – three cents or less declines – at the pump since last Monday: Idaho (-3 cents), Montana (-3 cent), Utah (-3 cents), Colorado (-2 cents) and Wyoming (-2 cents).

Compared to a month ago, gas prices are cheaper in the region, but not as significantly cheaper as much of the country is seeing. With nine-cent monthly differences, Idaho, Wyoming, Montana and Utah rank among the top 10 states with the smallest monthly decrease.

EIA data reports regional refinery utilization dropped 5%. However, as the region was carrying a rate more than 100% in the past few weeks, this move only drops the current rate to 98.7%. Stocks dipped slightly (45,000 bbl) to now measure at 7.4 million bbl. Thanks to a summer of strong refinery runs, stocks sit close to a 1 million bbl surplus.

West Coast

Pump prices in the West Coast region are the highest in the nation, with most states in the region landing on the top 10 most expensive list today. Hawaii ($3.64) and California ($3.59) are the most expensive markets in the country. Washington ($3.23), Nevada ($3.16), Oregon ($3.08) and Alaska ($3.03) follow. Arizona ($2.78) is the only state in the region to not be included in the list. Most state averages in the region have decreased on the week, with Nevada (-4 cents) seeing the largest decline.

The EIA’s recent report for the week ending on August 9 showed that West Coast gasoline stocks sit at 30.2 million bbl, falling by 1.5 million bbl from the previous week. The current level is approximately 100,000 bbl lower than last year at this time, which could cause prices to increase moderately if there is any disruption in supply or an increase in gas demand in the region this week.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 40 cents to settle at $54.87. Crude prices rose at the end of last week after sustaining heavy losses for two days. The losses came as a result of continued market worries about crude demand slumping this fall as a result of the ongoing trade dispute between the United States and China, the world’s two largest oil consuming countries. If the trade dispute continues this week, crude prices may see further declines.

Additionally, last week OPEC trimmed its global oil demand forecast, citing a slowing economy. OPEC now calculates that this year’s crude demand growth will hit 1.1 million b/d on a year-over-year basis. The new rate reflects a slight dip of 40,000 b/d due to a slowdown in global demand trends in the first half of 2019.

 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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