The price of gas continues to rise, according to a Monday news release from the American Automobile Association (AAA). The release said the reason for the price climb continues to be the high price of crude oil. However, the release also said that moderating winter weather and optimism around the omicron variant fading caused an increase in gas demand.
“More drivers fueling up here coupled with a persistent tight supply of oil worldwide provides the recipe for higher prices at the pump,” Andrew Gross, a AAA spokesperson, said. “And, unfortunately for consumers, it does not appear that this trend will change anytime soon.”
The release said new information from the Energy Information Administration (EIA) said that its total domestic gasoline stocks decreased by 1.6 million barrels (bbl) to 248.4 million bbl last week. It also said gasoline demand rose from 8.23 million barrels per day (b/d) to 9.13 b/d.
The AAA release said the decrease in total stock and the increased demand “contributed” to the rising pressure in gas prices, but that the rising crude prices also played a “dominant” role in those prices going even higher. It said prices will likely increase as the demand grows and crude oil prices stay above $90 per barrel.
“At the close of Friday’s formal trading session, WTI [West Texas Intermediate crude] increased by $3.22 to settle at $93.10,” the AAA news release said. “The tension between Russia and Ukraine continues to contribute to rising oil prices. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market. Additionally, EIA reported that total domestic crude stocks decreased by 4.7 million bbl to 410.4 million bbl. The current stock level is approximately 13 percent lower than at the beginning of February 2021, contributing to pressure on domestic crude prices. If tension between Russia and Ukraine continues this week or EIA’s next report shows another inventory decline, crude prices could continue to rise.”
AAA said Ohio had the 44th highest gas price of all the states in the country plus Washington, D.C. The site said Ohio’s average price per gallon was $3.231 as of Tuesday. That is a decrease from one week ago when the price per gallon was $3.264, according to AAA. One month ago, the average price was $3.079.
The lowest area gas prices, according to GasBuddy on Feb. 15, were:
* Chillicothe — The lowest price was $3.22 at Murphy USA.
* Greenfield — The lowest price was $3.18 at 1st Stop.
* Hillsboro — The lowest price was $3.02 at multiple places.
* Mount Orab — The lowest price was $3.25 at multiple places.
* Wilmington — The lowest price was $3.16 at Shop & Go.
Reach Jacob Clary at 937-402-2570.
