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Oklahoma Ranks in Top 10 Lowest Gas Prices
October 30, 2017 - - - At $2.30 a gallon average, gas prices in Oklahoma rank tenth lowest in the nation, according to AAA. Today’s national gas price average, $2.47, is one cent more on the week. Gas prices are fluctuating across the country with 25 states paying more, 17 states paying less and nine states staying stable on the week for a gallon of regular gasoline. States in the Great Lakes and Central are experiencing the biggest increases (six to 12 cents).
“Depending on where in the country you are filling up your tank, gasoline prices are up this week while others are seeing lower gas prices,” said Leslie Gamble, AAA Oklahoma Public & Government Affairs Manager. “The price volatility can be attributed to a new trend that has emerged during October in the last few years, which is an unexpectedly steady demand for gasoline after the end of the summer driving season.”
Despite the fluctuation, AAA forecasts that the national average gas price will decrease as the holidays approach.
After three weeks of inventory builds, regional inventory on the week decreased by 2.4 million bbl to 77.6 million bbl. The decline hits as Gulf Coast refineries utilization capacity surpassed 90 percent for the first time since Hurricane Harvey made landfall in the U.S., indicating that the inventory drop is likely due to exports. But it is worth noting that according to the latest Energy Information Administration (EIA), overall inventory levels for the region are sitting at a half a million more than this time last year
Oil market dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI closed at $53.90/bbl, with a gain of $1.26 for the day. Oil prices may continue pushing higher this week, following the release of EIA’s latest report that showed exports of U.S. crude surpassed 1.9 million b/d for the second time in the last four weeks. The growth in exports has helped the price gain amid concerns that global supply is tightening as OPEC’s production reduction agreement has greater influence over the oil market. Additionally, total U.S. crude inventories rose by 900,000 bbl as inputs to refineries rose by 609,000 b/d. The refinery increases are likely due to production levels stabilizing above 16 million b/d after restarts of several Gulf Coast as a precaution ahead of Hurricane Nate's landfall earlier this month.
Last week, Baker Hughes, Inc. reported that the U.S. gained one oil rig, bringing the total to 737. The news comes amid reports over the weekend that the United Arab Emirates (UAE) will continue cutting oil output to comply with the OPEC and non-OPEC production cut agreement set in place until March 2018. The UAE’s compliance with the agreement has been under question, as many other participant countries have made drastic production cuts in an effort to reduce global supply. OPEC and allied non-OPEC producers will review the agreement at a Nov. 30 meeting in Vienna, where they may decide to take further steps to deepen the agreement’s impact on the market.
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 atAAA.com/mobile.
AAA provides automotive, travel, and insurance services to 58million members nationwide and more than 404,000 members in Oklahoma.AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years. AAA is a not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel, and track their roadside assistance service with the AAA Mobile app (AAA.com/mobile) for iPhone, iPad and Android.For more information, visitwww.AAA.com.
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