No “sweet” news for South Central Ohio motorists this week as gas prices increased by four cents this week to $2.161 per gallon, according to AAA East Central’s Gas Price Report.
On the National Front
Gas prices edged up higher fractions of a penny over the weekend to reach today’s average price of $2.28. This is seven cents less per gallon on the month and an increase of 58 cents per gallon compared to this same date last year.
Gas prices have remained relatively steady the past month due to a well-supplied crude oil market. Today the Organization of the Exporting Petroleum Countries (OPEC) released their Monthly Oil Market Report showing that participating countries implemented 90 percent of the agreed upon production cuts, which took effect on January 1, 2017. Despite production cuts by OPEC, the market remains overfed due to increased U.S. drilling and production.
Averages are down in many states, with the largest monthly savings experienced by: Delaware (-18 cents), Ohio (-17 cents), West Virginia (-16 cents), Illinois (-15 cents) and Wisconsin (-13 cents).
Prices in the Central region remained relatively stable over the past week while this region of Ohio saw a slight increase in prices due to unplanned maintenance at Husky Energy’s 170,000 b/d refinery in Lima, Ohio, as reported by OPIS. The latest EIA report shows that Midwest gasoline inventories climbed to 60.251 million bbl last week while gasoline production also increased to 2.435 million b/d.
Monday morning crude oil prices slipped slightly despite reports that OPEC members cut 890,000 barrels of oil per day in January. OPEC’s Monthly Oil Market Report stated that participating countries successfully implemented 90 percent of the agreed production cuts they pledged in last year’s historic deal. It also showed that some producers, like Saudi Arabia, cut more than was originally required. In November of last year, OPEC and non-OPEC countries agreed to cut the amount of oil they were producing collectively by 1.8 million barrels per day for six months, starting on January 1.
Any gains this report may have resulted in have been tempered by the continued increase in U.S. drilling and production. According to Baker Hughes, over the past week the U.S. added eight more oil rigs- bringing the total count to 591, which is the highest number since October 2015. Traders will continue to watch for cartel production compliance and any fluctuations in U.S. production. At the close of formal trading on the NYMEX, West Texas Intermediate was up 86 cents, settling at $53.86 per barrel.
This week’s average prices: South Central Ohio Average $2.191
Average price during the week of February 6, 2017 $2.125
Average price during the week of February 15, 2016 $1.559
Here is the price per gallon of unleaded self-serve gasoline in various areas:
$2.129 East Liverpool
$2.132 Washington Court House
Drivers 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 at AAA.com/mobile.
AAA East Central is a not-for-profit association with 82 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members.