Gas Prices Remain Near 2016-High

The national average price of gasoline increased slightly over the past week, and it is likely that prices are heading for a new 2016 high in the coming days. Gas prices are rising due to more expensive crude oil costs brought about by wildfires in Canada and supply disruptions in other oil-producing countries. Today’s average price of $2.22 per gallon for regular unleaded gasoline represents an increase of 11 cents per gallon on the month, though drivers continue to enjoy a substantial year-over-year discount of 48 cents per gallon.

Locally, South Jersey drivers are paying an average of $2.03 for a gallon of unleaded gas. This is a decrease of a penny from last week ($2.04), but is still 9 cents higher than this time last month ($1.94). However, today’s price is 44 cents less than one year ago ($2.47).

Gasoline demand regularly increases leading into the summer driving season, and this year has been no exception. According to last week’s supply report from the Energy Information Administration, U.S. gasoline demand hit its highest mark of the year at 9.66 million barrels per day, which was the highest number since August and 4.4 percent higher than the same period last year. While domestic gasoline inventories reportedly decreased by about one million barrels, supplies are still some 14 million barrels higher than a year ago. In response to this seasonal increase in demand, refineries nationwide are ramping up production, although some facilities, particularly in the Great Lakes region, have been impacted by the fires in Alberta, Canada.

Quick Stats

The nation’s top five most expensive markets are: California ($2.80), Hawaii ($2.67), Washington ($2.55), Alaska ($2.52) and Nevada ($2.48).
The nation’s top five least expensive markets are: Arkansas ($1.99), Texas ($1.99), Louisiana ($2.00), Mississippi ($2.00) and Oklahoma ($2.00).
Averages are down in nearly every state year-over-year, with the largest yearly savings experienced by drivers on the West Coast:  California ($1.02), Nevada (-81 cents), Alaska (-69 cents), Arizona (-62 cents), Utah (-59 cents) and Oregon (-59 cents).
Gas prices have increased the most month-over-month in Idaho (+28 cents), Utah (+25 cents), Washington (+23 cents) and Oregon (+23 cents).

East Coast

The Department of Energy reported last week that gasoline inventories were sharply lower, down 2.2 million barrels, on the East Coast. However, the region continues to be well supplied with fuel, and prices have been largely steady in the region over the past week.

Oil Market Dynamics

Global oil prices began this week pointed higher as market watchers continue to evaluate how recent supply disruptions may impact the glut of global crude oil. This includes the impact of wild fires in Canada and ongoing issues in the Middle East, North Africa, Nigeria and Venezuela.

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate crude oil was down 49 cents on the day, but up several dollars per barrel on the week to settle at $46.21.

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.