AAA: Small Increase at the Pump; Demand Jumps Nationwide
This week’s average prices: Western Pennsylvania Average $2.735
Average price during the week of January 19, 2021 $2.708
Average price during the week of January 27, 2020 $2.764
The average price of unleaded self-serve gasoline in various areas:
$2.557 New Castle
$2.763 New Kensington
$2.799 Oil City
At the pump, the national average increased by two cents on the week to $2.40. Five states saw gas prices decrease – Michigan (-5 cents), Indiana (-5 cents), Ohio (-2 cents), North Carolina (-1 cent) and Delaware (-1 cent); while the rest of the country saw nominal increases. Moreover, only three states saw gas price averages increase more than a nickel.
According to the latest Energy Information Administration (EIA) measurement, gasoline demand jumped from 7.53 million b/d to 8.11 million b/d. Typically, a significant increase in demand results in a comparable decrease in supply, ultimately translating to more expensive pump prices. However, the recent large jump in demand had little impact on gasoline supply and minimal impact on pump prices so far. Another week of substantial demand increase could have a larger impact on inventory levels and lead to a larger rise at the pump.
At the close of Friday’s formal trading session, West Texas Intermediate decreased by 86 cents to settle at $52.36. Crude prices declined last week following market concern as coronavirus infections rise and a possible reduction in crude demand looms. Additionally, the EIA’s latest weekly report revealed that total domestic crude inventories rose by 4.4 million barrels to 486.6 million barrels, which also put downward pressure on crude prices. For this week, crude prices may continue to drop if market concern regarding demand continues to grow.
Motorists can find current gas prices nationwide, statewide, and countywide at GasPrices.AAA.com.
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