Gas prices continued to rise over the past week, but only slightly, as it rose by 3 cents compared to the week prior, according to an American Automobile Association (AAA) news press release. AAA said the slow rise was due to a small decrease in gasoline demand.
However, AAA said the respite in rising prices could be brief, as crude oil went to above $115 a barrel because of fears of more global supply constraints from the European Union (EU) ban on Russian oil exports. The organization said another reason is because gasoline demand could climb as well because the travel season is just starting.
“So far, the pent-up urge to travel caused by the pandemic outweighs high pump prices for many consumers,” Andrew Gross, AAA spokesperson, said. “But 67 percent of drivers recently surveyed told us they would change their driving habits if gas hit $4.50 a gallon. That number rises to 75 percent at $5 a gallon. If pump prices keep rising, will people alter their summer travel plans? That remains to be seen.”
The release said new information from the Energy Information Administration (EIA) said its total domestic gasoline stocks decreased by 500,000 barrels (bbl) to 219.7 million bbl. It also said demand slightly fell from 9 million barrels per day (b/d) to 8.8 million b/d.
“At the close of Friday’s formal trading session, WTI increased by 98 cents to settle at $115.07,” the AAA news release said. “Crude prices rallied at the end of last week following news that the EU was seeking unanimous support of all 27 member countries to impose a ban on Russian oil later this year. Yesterday, EU leaders announced they will ban 90 percent of Russian oil imports by the end of 2022. Crude prices also increased last week after EIA reported that domestic crude supply decreased by 1 million bbl to 419.8 million bbl. The current level is approximately 13.3 percent lower than during the third week of May 2021. Crude prices could rise again this week if EIA’s next report shows total domestic supply remains tight.”
AAA said Ohio had the 28th highest gas price of all of the states in the country plus Washington, D.C. The site said Ohio’s average price per gallon was $4.454 as of Tuesday. That is a small decrease from one week ago when the price per gallon was $4.455, according to AAA. One month ago, the average price was $3.920.
The lowest area gas prices, according to GasBuddy on May 31, were:
* Chillicothe — The lowest price was $4.31 at Murphy USA.
* Greenfield — The lowest price was $4.35 at Marathon.
* Hillsboro — The lowest price was $4.32 at multiple places.
* Mount Orab — The lowest price was $4.39 at multiple places.
* Wilmington — The lowest price was $4.35 at multiple places.
Reach Jacob Clary at 937-402-2570.