Highest October Gasoline Demand Since 2006

Gas prices see a slight uptick

November 6, 2017 - - October was the highest month for U.S. gasoline demand since 2006, according to the Energy Information Administration (EIA).

“High demand for gas in October occurred, in part, due to consumers taking advantage of the unseasonably warm weather rather than spending time indoors,” said Leslie Gamble, AAA spokesperson. “As consumers fill up their tanks more frequently, we are seeing supply levels tighten and gas prices increase. However, we don’t expect this increase to be long-term.”

AAA reports that Oklahoma’s average gas prices rank ninth lowest in the nation at $2.33 a gallon, up 2 cents from the previous week.

At $2.53, today’s national average gas price is six cents more than a week ago, two cents more than a month ago and 31 cents more than a year ago. The national gas price average during the second half of October was relatively stable, fluctuating a penny or two until October 31. Since then, the national price has seen upward movement, primarily resulting from increased demand.

Quick Stats

• Thenation’s top ten largest weekly increases are:
• Thenation’s top ten least expensive markets are: Alabama ($2.21), Mississippi ($2.22),South Carolina ($2.23), Texas ($2.25), Arkansas ($2.26), Louisiana ($2.26), Virginia ($2.28), Tennessee ($2.28),Oklahoma ($2.33) and North Carolina ($2.35).

In the EIA’s latest report, total gasoline stocks are below 28 million bbl, reaching a seven-week low at 27.6 million bbl. Additionally, EIA’s report showed that the refinery utilization rate of crude fell to 81.4 percent from 81.9 percent last week, which means less gasoline is being produced. With demand remaining high and supplies tightening in the region, prices are also being pushed up by these supply and demand factors.

South and Southeast

Most South and Southeast motorists are paying more at the pump for a gallon of unleaded gasoline on the week: Louisiana (+4 cents), Arkansas (+4 cents), Mississippi (+3 cents), Oklahoma (+2 cents), Texas (+2 cent), South Carolina (+2 cents) and Alabama (+2 cent). Only the state of Georgia (-1 cent) saw gas prices decrease and Florida remained stable over the course of the last seven days. Despite the increases, the region carries some of the cheapest gas prices in the country with Alabama ($2.21) topping the country’s list of least inexpensive gas.

Compared to one month ago, many states in the region have seen double-digit declines in gas prices: Georgia (-20 cents), Florida (-16 cents), Alabama (-15 cents), South Carolina (-13 cents), Texas (-13 cents) and Mississippi (-11 cents).

The region is the only one in the country on the week to see a build in gasoline inventory. EIA reports an increase of 1.15 million bbl. Sitting at 78.8 million bbl, the total inventory is on par with levels this time last year.

Oil market dynamics

Last week, WTI hit a new 2017 high at $54.54 and the market will likely build on those gains this week. At the close of Friday’s formal trading session on the NYMEX, WTI settled up $1.10/bbl at $55.64/bbl. The latest EIA report showed major inventory draws and increased exports, both of which have helped push oil prices higher. Crude oil inventories slid by 2.4 million bbl, while crude oil exports reached a new record of 2.133 million b/d. All of this news has given market observers renewed confidence in seeing oil prices pushing higher as supplies appear to grow tighter and demand remains strong, fueled by oil demand growth in key export markets.

Last week, Baker Hughes, Inc. reported that the U.S. oil rig count dropped by eight rigs, bringing the total to 729. The news follows reports that at OPEC’s next meeting in Vienna on Nov. 30, OPEC and allied non-OPEC producers will review the agreement to reduce production through March of next year. Some reports have stated that the group may extend the agreement through the end of 2018, which if true, will likely help boost oil prices through the end of the year.

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.

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