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The national average for a gallon of regular gas went up a couple of cents since last week to $2.84. Drivers are still paying less than they were last year when the national average was $3.08.
Pump prices are typically low in January thanks to a dip in gas demand and cheaper winter blend gasoline. Crude oil prices remain low as markets keep an eye on tensions in Iran, which is a member of OPEC and one of the world’s top oil producers. Any disruption to Iran’s oil infrastructure could have a ripple effect on gas prices here at home.
According to new data from the Energy Information Administration (EIA), gasoline demand increased last week from 8.17 million b/d to 8.30 million. Total domestic gasoline supply increased from 242 million barrels to 251 million. Gasoline production increased last week, averaging 9.0 million barrels per day.
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose 87 cents to settle at $62.02 a barrel. The EIA reports crude oil inventories increased by 3.4 million barrels from the previous week. At 422.4 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.