CINCINNATI, OH. (April 7, 2020) – Today’s national gas price average is $1.91. That is eight cents cheaper than last Tuesday, 48 cents less than a month ago and 82 cents less expensive than a year ago. On the week, pump prices continued to push less expensive with gasoline demand registering at its lowest point since 1993. The latest Energy Information Administration (EIA) weekly report puts demand at 6.7 million b/d – a nearly 30 year low – and it’s likely to push lower as Americans are urged to stay at home at least until the beginning of May.

“This week, market analysts are watching crude oil prices, which started to increase at the end of last week,” said Jenifer Moore, AAA spokeswoman. “However, given the low demand readings, increases in crude aren’t likely to have an impact on gas prices in the near-term.”

In addition to crude oil, market analysts are also watching refinery rates. The U.S. refinery utilization average is down to 82%, a low not seen since September 2017. Given the drop in crude oil and gasoline demand, which is expected to push even lower, refineries are reducing production in hopes this could help to balance the amount of gasoline supply in the country.

Ohio is one of five states in the Great Lakes and Central Region seeing the largest year-over-year savings of $1.14 per gallon and is one of the states with the least expensive averages in the country.

The region added 1.7 million bbl last week, pushing total stock levels up to nearly 58 million bbl, according to the latest data from EIA. The increase in stocks will contribute to sustained lower pump prices in the region this week.

GAS PRICES FROM AAA

Average price per gallon of self-serve, regular gasoline.

Gas prices provided by AAA, https://gasprices.aaa.com/

Oil Market Dynamics

At the end of Friday's formal trading session, WTI increased by $3.02 to settle at $28.34 per barrel. Domestic crude prices increased at the end of last week, following news that the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, planned to hold an emergency meeting today to discuss potential crude production cuts amid the global oversupply caused by COVID-19. However, OPEC and its partners have moved the meeting to Thursday, April 9. Crude prices are likely to remain volatile this week until the meeting, where the market will be looking to see if production cuts are enacted and if they are drastic enough to curb the growing oversupply of crude in the global market.

AAA provides automotive, travel, and insurance services to 60 million members nationwide and nearly two and a half million members in Ohio.  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 non-stock, non-profit corporation working 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, visit www.AAA.com.

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