The price of gas decreased compared to last week and oil prices fell even more, according to an American Automobile Association (AAA) news release from Nov. 22. The news release said that oil prices have stayed above $80 per barrel since before Labor Day, but the price went down to the mid $70s this week.
The release said one reason for the decrease was because of fear of slowing economic activity in America and Europe because of the “resurgence of COVID-19.” Another reason was because of reports that the Biden administration called for a simultaneous release of oil that was stockpiled in large oil-consuming countries like the U.S., China, Japan and South Korea.
“The price of crude oil accounts for about 50 to 60 percent of what consumers pay at the pump, so a lower oil price should translate into better gasoline prices for drivers,” Andrew Gross, a AAA spokesperson, said. “But until global oil production ramps back up to pre-pandemic levels, this recent dip in the price of crude may only be temporary.”
The release said new information from the Energy Information Administration (EIA) said that its supply fell by 700,000 barrels (bbl) to 212 million bbl. The release also said the demand fell from 9.26 million barrels per day (b/d) to 9.24 million b/d.
The decrease in demand, alongside stocks, has helped to steady pump prices, “the AAA news release said. “However, gasoline prices will likely remain elevated as long as oil prices are near or above $75 per barrel.
AAA said Ohio had the 34th highest gas price of all the states in the country plus Washington, D.C. The site said Ohio’s average price per gallon was $3.207 as of Nov. 24. AAA said that is a decrease from one week ago when the price per gallon was $3.252. One month ago the average price was $3.211.
The lowest gas prices around Highland County, according to GasBuddy on Nov. 24, were:
* Chillicothe — The lowest price was $3.07 at Murphy USA.
* Greenfield — The lowest price was $3.15 at Clark.
* Hillsboro — The lowest price was $2.95 at multiple places.
* Mount Orab — The lowest price was $3.25 at multiple places.
* Wilmington — The lowest price was $3.18 at Shop & Go.
Reach Jacob Clary at 937-402-2570.