AAA: Crude Oil rises to $115 per barrel


Staff report



The average price of gasoline across South Central Ohio is three cents lower this week at $4.456 per gallon, according to AAA East Central’s Gas Price Report.

This week’s average prices: South Central Ohio Average: $4.456

Average price during the week of May 23, 2022 $4.482

Average price during the week of June 1, 2021 $2.889

The average price of unleaded self-serve gasoline in various areas:

$4.503 Athens

$4.432 Chillicothe

$4.492 Columbiana

$4.458 East Liverpool

$4.464 Gallipolis

$4.391 Hillsboro

$4.493 Ironton

$4.503 Jackson

$4.309 Logan

$4.427 Marietta

$4.462 Portsmouth

$4.422 Steubenville

$4.527 Washington Court House

$4.497 Waverly

The national average for a gallon of gas rose less than three cents over the past week to reach $4.62. However, the price of crude oil, which accounts for more than 50 percent of the cost of a gallon of gas, has now moved above $115 a barrel. This is due to fears of further global supply constraints as European Union (EU) leaders announced yesterday they will ban 90 percent of Russian oil imports by the end of 2022. Crude prices also increased last week after the Energy Information Administration (EIA) reported that domestic crude supply decreased by 1 million barrels to 419.8 million barrels. The current level is approximately 13.3 percent lower than during the third week of May 2021.

Even though gasoline demand was lower last week, domestic demand may start to climb again as drivers fuel up for the three-month-long summer travel season, which began this Memorial Day weekend. AAA forecast nearly 35 million travelers hit the road for Memorial Day, the highest number since 2019, despite record prices at the gas pump. The pent-up urge to travel caused by the pandemic has outweighed high pump prices for many consumers. But 67% of drivers recently surveyed told AAA they would change their driving habits if gas hit $4.50 a gallon. That number rises to 75% at $5 a gallon.

According to EIA data, total domestic gasoline stocks decreased by 500,000 barrels to 219.7 million barrels last week. Gasoline demand also dipped from 9 million barrels per day to 8.8 million barrels per day, approximately 700,000 barrels per day lower than a year ago.

Today’s national average for a gallon of gas is 45 cents more than a month ago and $1.58 more than a year ago.

Staff report