Rising oil prices cause gas prices to soar at the pump

washington d.c. – Motorists pay more at the pump, much more, because the price of gasoline continues to rise. Over the past two weeks, the national average for a gallon of gas rose 20 cents to $4.32, a penny less than the record set on March 11.

The increase is mainly due to the high cost of crude oil, which hovered around $100.00 a barrel last week and is now nearing $110.00.

“With the cost of oil being more than half the price at the pump, more expensive oil means more expensive gasoline,” said AAA spokesman Andrew Gross. “These prices are approaching those record highs of early March.”

According to new data from the Energy Information Administration (EIA), total national gasoline inventories fell by 2.2 million barrels to 228.6 million barrels last week. However, gasoline demand increased slightly from 8.74 million bpd to 8.86 million bpd. Rising gas demand and rising oil prices pushed prices at the pump higher. Prices at the pump will likely come under upward pressure as oil prices remain above $105.00 a barrel.

For those in the market for a new ride, one way to end pump pain may be to empty the pump. In the latest AAA Car Guide online, all category winners for 2022 are electric or hybrid-electric vehicles.

As well as being highly fuel efficient, the winners feature the latest advanced driver assistance systems. The AAA Car Guide also contains detailed information on recent AAA research on current automotive technologies and topics, such as driver assistance systems, fuel quality, headlight efficiency And much more.

Meanwhile, today’s national average for a gallon of gasoline is $4.32, up 20 cents from a month ago and $1.36 more than a month ago. year.

National Gas Price Comparison 2018-2021 5-9-22Quick Stats

Top 10 weekly increases nationwide: Michigan (+26 cents), New Jersey (+25 cents), Connecticut (+19 cents), Kentucky (+19 cents), Indiana (+19 cents), Rhode Island (+19 cents) ), Illinois (+18 cents), Washington, DC (+18 cents), Alabama (+18 cents) and Tennessee (+18 cents).

The 10 most expensive markets in the country: California ($5.82), Hawaii ($5.28), Nevada ($5.11), Washington ($4.83), Oregon ($4.81), Alaska ($4.73), Washington, DC ($4.69), Arizona ($4.66), Illinois ($4.59) and New York ($4.51).

Oil market dynamics

At the close of Friday’s official trading session, WTI was up $1.51 to settle at $109.77. Crude prices rose last week after the European Union announced a proposal to ban imports of Russian oil within six months, while imports of refined products would be banned by the end of 2022.

The price increases came despite China’s continued COVID-19 lockdowns weighing on crude demand and the EIA reports that total domestic crude inventories rose by 1.3 million barrels to 415.7 million barrels, around 14% below the storage level at the end of April 2021. .

Given that supply remains tight and the market remains very volatile, crude prices will likely continue to fluctuate this week, which could push pump prices higher.

Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

Steve R. Hansen