OHIO – Gas prices are back on the rise after being on the decline for over a month
“For the first time in over a month, the national average price of gasoline has risen. Primarily, this was due to oil prices that had jumped the prior week, pushing up the price that stations pay for fuel and thus causing them to raise prices,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The rise has been quite tame in most areas, while others have continued to gently decline. But, with the French election now behind us, there is risk that the EU could pursue harsher sanctions on Russia’s energy, which could cause oil prices to rise if it happens – something motorists should be on the watch for. In addition, U.S. oil inventories continue to decline, putting additional pressure on prices as the nation’s SPR continues to drain and Russia’s war on Ukraine remains ongoing. The global imbalance between supply and demand that led to these higher prices continues for the time being,” said Gasbuddy.
Crude oil inventories increased by 0.7 million barrels (MMbbl) to a total of 414.4 MMbbl. At 414.4 MMbbl, inventories are 78.7 MMbbl below last year (-16.0%) and are about 16% below the five-year average for this time of year. Inventories in Cushing, OK, the NYMEX delivery point, rose 1.3 million barrels to a total of 27.5 million barrels. The Strategic Petroleum Reserve (SPR) decreased 2.9 million barrels from the prior week to 553.1 million barrels and stands 12.8% below the year-ago level.
AS long as demand remains most likely it will be unlikely that prices will go down. At today’s average price it costs about 22.70 more to fill up than a year ago.
Today’s national average for a gallon of gas is $4.19, which is a penny less than a month ago, but $1.29 more than a year ago.