Blustery winter weather and geopolitical tensions are helping to drive theof oil higher, which is in the low-$90s per barrel, nearly $30 more than in August. The recent cold weather in the U.S increased the demand for heating oil. Meanwhile, the concern that Russia will react to potential western sanctions by withholding oil from the already tight global market puts heavy upward pressure on . The national average for a gallon of gas has surged to $3.44, eight cents more than a week ago. Gas was last this expensive in 2014.
“This shows how events on the other side of the globe can have a noticeable impact right here in the U.S,” said Andrew Gross,spokesperson. “And unfortunately for drivers, they are reminded of this by higher at the pump.”
According to new data from the( ), total domestic stocks grew by 2.1 million bbl to 250 million bbl last week. However, demand dropped from 8.51 million b/d to 8.23 million b/d. Usually, an increase in total stocks and a decrease in demand puts downward pressure on pump , but the rising cost of oil continues to push higher instead. If continue to climb, pump will likely follow suit.
Today’s national average for a gallon of gas is $3.44, which is 14 cents more than a month ago and 98 cents more than a year ago.
The nation’s top 10 largest weekly increases: Michigan (+15 cents), Ohio (+14 cents), Florida (+12 cents), Indiana (+11 cents), Minnesota (+11 cents), Delaware (+11 cents), Maryland (+10 cents), Illinois (+9 cents), Wisconsin (+9 cents) and Kansas (+9 cents).
The nation’s top 10 most expensive markets: California ($4.68), Hawaii ($4.40), Washington ($3.95), Oregon ($3.93), Nevada ($3.86),($3.78), Arizona ($3.64), Washington, D.C. ($3.62), Illinois ($3.61) and Pennsylvania ($3.61).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $2.04 to settle at $92.31. The tension between Russia and Ukraine continues to contribute to rising oil. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold oil from the global market. Additionally, reported that total domestic stocks decreased by 1.1 million bbl to 415.1 million bbl. The current stock level is approximately 13 percent lower than at the end of January 2021, contributing to pressure on domestic . If ’s next report shows another inventory decline, could continue to rise.
can find current gas along their route with the free Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access roadside assistance. Learn more at AAA.com/mobile.