Mar 12, 2018 | Community
At $2.53, the national gas price average has held steady for nine days. Factors contributing to the flat price include increased gasoline production that has kept pace with higher than usual demand this winter. The latest Energy Information Administration (EIA) report shows that demand increased week-over-week, registering at 9.2 b/d – the highest gasoline demand level seen this year.
“On the week, the majority of motorists are paying less at the pump with 67 percent However, the West Coast, Great Lakes and Central states are mostly seeing a gas price increase.”
Today’s national average is a nickel less than last month, but 13 cents more than one year ago.
Locally, South Jersey motorists are paying an average of $2.47 for a gallon of unleaded gas. This is 3 cents less than last week ($2.50), and 17 cents per gallon less than one month ago. However, today’s price is 25 cents per gallon higher than this time last year.
Quick Stats
Mid-Atlantic and Northeast
Across the Mid-Atlantic and Northeast region, gas prices dropped as much as 3 cents on the week with Pennsylvania and Delaware landing on this week’s top 10 states list with the biggest decreases. In the region, gas prices range from as low as $2.30 in Tennessee to as expensive as $2.76 in Pennsylvania.
Despite this week’s pump price decreases, all states in the region are paying more than at the same time last year. However, a handful are paying as much as 25-cents or more to fill up versus March 2017: Massachusetts (+31 cents), Rhode Island (+30 cents), Vermont (+30 cents), New Jersey (+29 cents), Connecticut (+29 cents), Washington, D.C. (+28 cents), New Hampshire (+28 cents), Pennsylvania (+26 cents), New York (+26 cents), Maine (+26 cents) and West Virginia (+25 cents).
Gasoline inventories took a large 3.4 million bbl draw on the week, according to the EIA. Regional inventory sits at 61.8 million bbl. The draw is not surprising given an increase in U.S. exports and that local Phillips 66 Bayway refinery continues maintenance.
Oil market dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.92 to settle at $62.04. Earlier in the week, after EIA’s weekly report noted that crude oil inventories increased by 2.4 million bbl last week, WTI prices took a hit. Crude prices rebounded toward the weekend because of a strong rally alongside the stock market. The price of crude has the potential to slide this week amid the fact that U.S. crude production continues to boom.
Crude production hit another record at 10.37 million b/d last week. Market observers are likely to continue watching this number to see if it begins to outpace domestic and global crude oil demand. According to Baker Hughes, the U.S. lost four active oil rigs last week. The current total stands at 796, which is 179 more than last year’s count at this time.