According to AAA, retail averages have increased 28 of the past 30 days and prices have moved higher by fractions of a penny since Friday.
The national average for regular unleaded gasoline currently sits at $2.29 per gallon, which is five cents more than one week ago, 16 cents more than one month ago and 29 cents more year-over-year.
Heading into 2017, gasoline demand is expected to drop drastically during the month of January following the busy holiday travel season. Over the past five years, the average drop during that period has been 358,000 b/d or about 15-million gallons, according to OPIS. The oil information service estimates a larger dip this year.
AAA estimates U.S. drivers have saved about $27 billion at the pump so far this year compared to the same period last year. Today’s national average price for a gallon of gasoline is $2.29, 29 cents more than the average price on New Year’s Day in 2016 ($2.00). Most U.S. drivers are expected to pay the second-cheapest New Year’s Day gas prices since 2009, when the national average was $1.62.
To start off the new year, all eyes will be on OPEC to see if they, along with partnering countries, will stick to their 6-month promise to cut 1.8-million b/d of crude per day. OPIS projects that member compliance will likely be around about 70 percent, with expectations that Saudi Arabia, Kuwait, the United Arab Emirates and other Arab Gulf countries will stick to the deal while Libya and Nigeria could potentially increase their production output if conflict in both countries continues.
West Coast
The West Coast leads the nation with four of the top five most expensive states located in the region: Hawaii ($2.97), California ($2.70), Alaska ($2.62) and Washington ($2.62). According to the latest EIA report, West Coast gasoline supplies declined 800,000 bbl to 29.2 million bbl for the week ending Dec. 16. These draws were the result of a few regional refinery issues, strong demand and recent exports out of the region to Mexico and Guatemala. OPIS reports that the delayed restart of Chevron’s 257,200-b/d Richmond, Calif., refinery following planned autumn maintenance was likely a contributor to the drop in supplies. Maintenance at the refinery was originally scheduled to end in November, but was delayed in to the early part of December. Oil prices along with a drop in supplies and increase in demand over the busy holiday travel period are likely to result in rising prices at the pump.
2 comments
Just wait and see if Jimmy Frazier gets his way with gas prices. Politics before us.
One more reason to DUMP Frazier. You will be reminded weekly at the gas pump so don’t forget at the polls.
This loser needs to get a real job and get his hands out of our pockets. Frazier is a simpleton who has no comprehension of economics or politics. His is a one man freak show who cannot find his way out of a wet paper bag.
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