AAA WEEKLY FUEL GAUGE: Crude and Gas Prices Continue to Climb Higher as Stocks Tighten and Refinery Utilization Plummets to Lowest Level Recorded
MADISON, Wis., (March 8, 2021) – With a nickel increase on the week, the national gas price average has reached $2.77, which is a 31-cent jump in the last month. Every state average has climbed by double-digits since February resulting in 1 in 10 gas stations with pump prices that are $3/gallon or more. There are many factors causing upward pressure at the pump. The driving forces are: "With crude oil prices back on the rise, we could see the national average climb towards $2.90 this spring with some relief by early summer," said Nick Jarmusz, director of public affairs for AAA – The Auto Club Group. "The last time we saw the national average flirt with $3 was nearly three years ago in May 2018. At that time, crude was averaging about $71 per barrel." The Energy Information Administration's (EIA) report for the week ending February 26 shows refinery capacity at 56%, which is the lowest rate recorded by the agency. It is also 12 percentage points below last week and 18 percentage points lower than a year ago. EIA data also points to a decrease in gasoline stocks down to 243.4 million bbl, which is 3.5% below levels at the end of February 2020. With refinery utilization at a record low, gasoline supplies tightening, demand modestly increasing and crude prices on the rise, cheap prices are in the rear view mirror for the immediate future. Today's national average is nearly 40 cents more expensive compared to a year ago, which was right before state lockdowns and working/school from home started. Monday Sunday Week Ago Month Ago One Year Ago National $2.774 $2.768 $2.720 $2.466 $2.388 Wisconsin $2.643 $2.646 $2.623 $2.323 $2.274 Appleton $2.564 $2.567 $2.540 $2.228 $2.225 Eau Claire $2.724 $2.723 $2.712 $2.409 $2.335 Green Bay $2.639 $2.640 $2.605 $2.273 $2.287 Janesville-Beloit $2.603 $2.603 $2.584 $2.319 $2.187 La Crosse $2.775 $2.762 $2.681 $2.383 $2.284 Madison $2.603 $2.608 $2.564 $2.301 $2.222 Milwaukee $2.617 $2.619 $2.603 $2.326 $2.217 Wausau $2.674 $2.676 $2.640 $2.285 $2.327 Click here to view current gasoline price averages Oil Market Dynamics At the close of Friday's formal trading session, WTI increased by $2.26 to settle at $66.09. At the end of last week, OPEC+ announced the decision to add only about 170,000 barrels per day to world markets in April. The industry had been expecting a production increase of about 1.5 million barrels per day in April, with more oil released in May, June, and beyond. This decision sent crude oil surging to the highest price point since April 2019. For this week, prices may continue to increase if the market remains optimistic about crude demand as vaccines become more widespread. Gas Price Survey Methodology # # #
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.