AAA is reporting this week that price of oil creeping above $90 a barrel for the first time in several weeks, driven by OPEC+ recent announcement that the group of oil-producing nations would slash output by 2 million barrels per day.
A higher cost for oil usually means more expensive gasoline and higher travel costs for both consumers and business travelers. Meanwhile, domestic demand increased as more drivers fueled up last week. The national average pump price for a gallon of gas rose 12 cents over the past week to hit $3.91.
"Gas prices in California are finally cooling off, as more refineries come back online after undergoing maintenance and the switch to cheaper winter blends takes effect," said Andrew Gross, AAA spokesperson. "High West Coast prices have played a major role in the recent climb in the national average for gas. Reversing this trend may help take some pressure off of pump prices."
According to new data from the Energy Information Administration (EIA), gas demand increased nationally from 8.83 million b/d to 9.47 million b/d last week. Total domestic gasoline stocks decreased significantly by 4.7 million bbl to 207.5 million bbl. High gasoline demand, amid tight supply, has led to higher pump prices nationwide.
Today's national average of $3.91 is 19 cents higher than a month ago, and 65 cents more than a year ago.
U.S. Gas Price Increase Stats
The nation's top 10 largest weekly increases: Maryland (+24 cents), Delaware (+24 cents), Illinois (+24 cents), Ohio (+23 cents), Louisiana (+22 cents), Tennessee (+21 cents), Indiana (+21 cents), Alaska (+20 cents), Mississippi (+20 cents) and North Carolina (+20 cents).
The nation's top 10 most expensive markets: California ($6.33), Alaska ($5.54), Oregon ($5.53), Nevada ($5.44), Washington ($5.40), Hawaii ($5.21), Arizona ($4.56), Idaho ($4.42), Illinois ($4.40) and Michigan ($4.35).