The average price of gasoline across South Central Ohio is a penny higher this week at $1.984 per gallon, according to AAA East Central’s Gas Price Report.
Indiana (+12 cents), Missouri (+11 cents), Kentucky (+10 cents) and Kansas (+9 cents) saw the largest pump price increases in the Great Lakes and Central states region. They also land on the top 10 list for largest weekly increases in the country. All other states in the region saw increases of only 2 to 4 cents (Ohio, +4 cents).
Illinois ($2.29) ranks as the 7th most expensive state average in the country and the highest in the region. On the other end of the spectrum, Missouri ($1.76) and Kansas ($1.77) rank as the 8th and 9th least expensive averages, respectively.
Gasoline stocks in the region drew by about 600,000 barrels to push total stocks down to 54.4 million, according to Energy Information Administration (EIA) data. The small draw, combined with mostly steady refinery rates, will likely help to keep any price increases in the week ahead minimal.
This week’s average prices: South Central Ohio Average: $1.984
Average price during the week of June 1, 2020 $1.975
Average price during the week of June 10, 2019 $2.587
The average price of unleaded self-serve gasoline in various areas:
$2.089 East Liverpool
$1.984 Washington Court House
On the National Front
For 66 days, the national gas price average held below the $2/gallon mark, pushing as cheap as $1.76. In the past week, the average has inched up to $2.03. Despite the consistent increases at the pump, gas prices are still significantly cheaper year-over-year, and haven’t been this cheap at the beginning of June since 2004. In fact, during the first week of June the past five years, gas prices have typically averaged $2.81.
U.S. gasoline demand continues to show increasing strength. The EIA’s latest reading shows a 4% weekly increase at 7.5 million b/d. That is the highest demand level since states began issuing stay-at-home orders in mid-March.
At the end of Friday’s formal trading session, West Texas Intermediate increased by $2.14 to settle at $39.55 per barrel. At the end of last week, crude prices increased amid market optimism that the Organization of the Petroleum Exporting Countries (OPEC) and other major crude exporters, including Russia, would extend their 9.7 million b/d production reduction agreement for May and June 2020 into July. Over the weekend, the cartel and its partners agreed to extend the deal for July, which is expected to reduce global crude supplies by nearly 10 percent while global crude oil demand remains low due to COVID-19. Crude prices will likely increase this week in reaction to OPEC’s announcement.
Additionally, approximately one third of crude oil and natural gas production in the Gulf of Mexico has been halted, as Tropical Depression Cristobal makes landfall in Louisiana. The storm is expected to bring tropical-storm force winds and potential storm surge and flooding to the state’s coastal areas. There is no estimate for when the facilities will resume operations. Any impact on domestic crude prices will depend on how long production remains shuttered and the extent of damage caused by the storm.
Motorists can find current gas prices nationwide, statewide, and countywide at GasPrices.AAA.com.
AAA East Central is a not-for-profit association with 78 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members. News releases are available at news.eastcentral.aaa.com. Follow us on Twitter and Facebook.