Gas prices have catapulted due to the continued Russia and Ukraine conflict, according to a news release from the American Automobile Association (AAA). The release said that the national average skyrocketed by 45 cents from a week ago, 62 cents from a month ago and $1.30 from a year ago to $4.06. It said the average had not been this high since July 2008.
“Last week, the International Energy Agency (IEA) announced a coordinated release of crude oil from its 31 member countries’ strategic reserves, including the U.S., Germany, Canada, South Korea and Mexico, to help counter the impact of rising crude prices,” the release said. “On Friday, IEA said member states committed to releasing a total of 61.7 million barrels (bbl) from their strategic reserves to reassure markets roiled by the fallout from Russia’s invasion of Ukraine. This amount — half of which is expected to come from the U.S. — is the largest coordinated release since IEA was founded in 1974. Despite this announcement, the impact on pricing has been limited given that the amount of oil planned for release is small in comparison to the amount that flows daily from Russia to other countries around the globe.”
The release said new information from the EIA said its total domestic gasoline stocks decreased by 500,000 bbl to 246 million bbl last week. It also said gasoline demand slightly rose from 8.66 million barrels per day (b/d) to 8.74 b/d.
It said the increase in gas demand and reduction in total supply contributed to the rise in gas prices. However, the increasing oil prices played a leading part in that gas price climb as well.
“At the close of Friday’s formal trading session, WTI increased by $8.01 to settle at $115.68,” the AAA news release said. “Crude prices continue to surge in response to the conflict between Russia and Ukraine. As the conflict continues, the oil markets will likely respond by increasing the price of crude oil to reflect more risk of disruption to tight global oil supplies this week. Additionally, EIA reported that total domestic crude stocks decreased by 2.6 million bbl last week to 413.4 million bbl. The current stock level is approximately 15 percent lower than at the end of February 2021, contributing to pressure on domestic crude prices.”
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 $4.091 as of Thursday. That is an increase from one week ago when the price per gallon was $3.629, according to AAA. One month ago, the average price was $3.254.
The lowest area gas prices, according to GasBuddy on March 10, were:
* Chillicothe — The lowest price was $4.09 at multiple places.
* Greenfield — The lowest price was $4.07 at Clark.
* Hillsboro — The lowest price was $4.06 at multiple places.
* Mount Orab — The lowest price was $4.09 at multiple places.
* Wilmington — The lowest price was $3.99 at Shop & Go.
Reach Jacob Clary at 937-402-2570.