AAA reported that since Monday, the national average for a gallon of regular gasoline increased 6 cents to $3.82 dollars, and that while Hurricane Ian has been downgraded to a tropical storm, its full impact is still unknown as rain and wind continue in Florida.
AAA Gas Prices notes that gasoline distribution could be limited in affected areas due to lack of electricity and flooded roads and highways.
Meanwhile, the Energy Information Administration (EIA) reported that gas demand increased nationwide from 8 .36 million barrels per day (b/d) at 8.83 million b/d last week, and total domestic gasoline stocks decreased by 2.4 million barrels (bbl) to 200.2 million bbl.
According to AAA, increased demand for gasoline amid tight supply and fluctuation ion of oil prices have risen above the national average: “If demand remains strong as supply tightens, drivers should brace for rising pump prices over the weekend.”
Regarding WTI, it is reported that at the close of the formal trading session on Wednesday, it increased by $3.65 dollars to be located in $82.15 dollars.
Crude oil prices have increased this week due to market concerns about oil supply. According to the US Office of Safety and Environmental Enforcement, the 11% of crude oil production in the Gulf of Mexico was shut down to prevent damage from Hurricane Ian. However, some production has resumed, with just over 9% of production still shut down.
Separately, reports have emerged that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, intend to announce collective cuts in oil production at their next meeting on October 5. In addition, according to the latest weekly EIA report, total domestic commercial crude oil inventories decreased slightly by 200,000 bbl to 430.6 million bbl.
States with the largest weekly increases:
– California, +67 cents
– Oregon, +59 cents
– Washington, +53 cents
– Wisconsin, +44 cents
– Alaska, +44 cents
– Nevada, + 36 cents
– Michigan, +30 cents
– Arizona, +29 cents
– Indiana, +22 cents
– Ohio, +21 cents
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