Gas prices have continued their climb in price seen in the last couple of weeks, according to an American Automobile Association (AAA) press release. AAA said this increase in price was primarily because of the high cost of crude oil, which was at almost $100 a barrel last week and now nearing $110 per barrel.
“With the cost of oil accounting for more than half of the pump price, more expensive oil means more expensive gasoline,” Andrew Gross, AAA spokesperson, said. “These prices are creeping closer to those record-high levels of early March.”
The release said new information from the Energy Information Association (EIA) said its total domestic gasoline stocks decreased by 2.2 million barrels (bbl) to 228.6 million bbl. It also said demand slightly increased from 8.74 million barrels per day (b/d) to 8.86 million b/d.
“We will see this trend continue probably throughout summer, mainly because of demand,” Gross said. “The weather’s getting warmer. The days are getting nicer. People are hitting the road.”
AAA said two of the reasons for the increase in gas prices are increasing oil demands and rising oil prices. The release said prices at the pump would “likely face upward pressure as the oil prices stay above $105 a barrel.
At the close of Friday’s formal trading session, WTI increased by $1.51 to settle at $109.77,” the AAA news release said. “Crude prices rose last week after the European Union announced a proposal to ban Russian oil imports within six months, while refined product imports would be prohibited by the end of 2022. The price increases occurred despite continuing COVID lockdowns in China weighing down crude demand and EIA reporting that total domestic crude inventories increased by 1.3 million bbl to 415.7 million bbl, which is approximately 14 percent lower than the storage level at the end of April 2021. Since supply remains tight and the market remains highly volatile, crude prices will likely continue to fluctuate this week, potentially pushing pump prices higher.
AAA said Ohio had the 32nd highest gas price of all of the states in the county plus Washington, D.C. The site said Ohio’s average price per gallon was $4.177 as of Tuesday. That is an increase from one week ago when the price per gallon was $3.950, according to AAA. One month ago, the average price was $3.863.
The lowest area gas prices, according to GasBuddy on May 10, were:
* Chillicothe — The lowest price was $4.29 at Kroger.
* Greenfield — The lowest price was $4.06 at Save-a-Lot.
* Hillsboro — The lowest price was $4.02 at Murphy USA.
* Mount Orab — The lowest price was $4.15 at multiple places.
* Wilmington — The lowest price was $4.09 at United Dairy Farmers.
Reach Jacob Clary at 937-402-2570.