Pump prices stabilize as demand and oil costs rebound explains AAA

LEXINGTON, Ky. — The slide in gas prices slowed to a crawl over concerns about increased global oil prices and the return of seasonal domestic gas demands. The war in Ukraine and fear of less Russian oil entering the market caused the price of crude to creep back above $100 a barrel. Meanwhile, as more places in the U.S. see pump prices fall below $4 a gallon, demand is ticking back up. Domestically, the national average for a gallon of gas has fallen to $4.08. In Kentucky, the average price is down 5 cents compared to last week at this time, one of the nation’s 10 largest drops on the week.

“Now that pump prices have dipped back below their record highs, and people are starting to enjoy warmer weather and longer days, we expect to see more people hitting the road for long-awaited getaways,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “Unfortunately, declines in gas price could be temporary if the global price of oil continues to push back upward because of tightening supplies.”

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 3.5 million barrels to 233.1 million barrels last week. Gasoline demand increased slightly from 8.5 million barrels per day to 8.73 million barrels per day. Although supply and demand factors would have typically supported elevated pump prices, the fluctuating oil price continues to be the main factor influencing prices at the pump. Pump prices could still face some downward pressure if oil prices remain near $100 per barrel.

Cheaper by the dozen

Meanwhile, consumers can enjoy a tasty treat thanks to lower prices at the pump, courtesy of Krispy Kreme Doughnuts. For the next three Wednesdays, Krispy Kreme will lower the price of a dozen of their Original Glazed donuts to equal the national gas price average that AAA reports each Monday. The offer runs through Wednesday, May 4^th. A dozen glazed doughnuts typically cost around $12. This Wednesday’s dozen should cost $4.08, not including sales tax. The offer is valid only in the shop, drive-thru, and online pickup.

As noted, today’s national average for a gallon of gas is $4.08, which is 19 cents less than a month ago, and $1.21 more than a year ago.

Kentucky’s gas price average is now at $3.80, down 5 cents on the week and just like the national average, down 19 cents on the month. Today’s price is $1.06 more than a year ago.

Checking nearby, the average price for a gallon of unleaded today in Ohio is $3.78, West Virginia $3.95, Virginia $3.94, Tennessee $3.85, Indiana $3.92, Illinois $4.35 and Missouri $3.67.

GAS PRICES FROM AAA
April 18, 2022

Average price per gallon of self-serve, regular gasoline.
Gas prices provided by AAA http://gasprices.aaa.com/

Quick Stats

The nation’s top 10 largest weekly decreases: Ohio (−7 cents), Delaware (−7 cents), Florida (−6 cents), Indiana (−6 cents), California (−5 cents), Georgia (−5 cents), Pennsylvania (−5 cents), Kentucky (−5 cents), Virginia (−4 cents) and West Virginia (−4 cents).

The nation’s top 10 least expensive markets: Kansas ($3.66), Missouri ($3.66), Arkansas ($3.69), Georgia ($3.70), Oklahoma ($3.71), Texas ($3.71), South Carolina ($3.74), Mississippi ($3.77), Ohio ($3.77) and Iowa ($3.78).

Oil Market Dynamics
At the close of Thursday’s formal trading session, WTI increased by $2.70 to settle at $106.95. According to EIA’s weekly report, U.S. commercial crude oil inventories increased by 9.4 million barrels from the previous week to reach 421.8 million barrels. Despite reports of increased inventory, crude oil prices jumped last week as the European Union announced they are drafting plans to ban Russian oil imports, a move that could tighten global supply as member countries look for new sources for crude oil in an already tight market.

Additionally, the most recent Oil Market Report from the International Energy Agency (IEA) forecasts that Russian oil output will shrink by about 1.5 million barrels per day this month as the result of financial and export sanctions. The crude oil market will likely remain volatile this week and could continue to fluctuate if concerns about supply persist.

AAA has a variety of resources to help motorists save on fuel:

• Fuel Price Finder (http://www.AAA.com/fuelfinder) locates the lowest fuel price in your area.
• AAA Gas Cost Calculator (http://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses.
• TripTik Mobile (http://www.aaa.com/mobile) plots fuel prices along your travel route.

AAA is the most comprehensive resource for gas prices, with reported prices reflecting actual prices from credit card transactions at more than 100,000 gas stations in the U.S. 

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