National gas price average jumps by a dime in one week

(September 24, 2019) Last week was the first time since early June that the national gas price average jumped more than a nickel in under a few days. On the week, it’s a dime more expensive at $2.66 with half of states seeing prices increase by 10 cents or more. However, even with the significant increase, the national average is still cheaper compared to last month (-6 cents) and last year (-19 cents), according to AAA.

Spurred by the Saudi Arabian oil facilities attacks the weekend prior, crude oil (West Texas Intermediate – WTI) increased as much as $10 a barrel at its highest point early last week to nearly $64 a barrel.

Gasoline stations reacted just as swiftly as the market, raising local retail prices by as much as a quarter, which pushed the national average up six cents overnight last Tuesday. However, by the end of last week, crude was down to $58 a barrel and gas prices started to stabilize as reports surfaced that Saudi facilities should be fully operational by end of September.

“At $2.66, the national average is a dime more expensive that last week. The good news is we are seeing downward movement with crude oil prices and stabilization at gas pumps, but Americans can expect some fluctuation through the end of the month,” said Jeanette Casselano, AAA spokesperson. “Should Saudi’s crude production be back to full capacity shortly, the price spikes are likely to be temporary.”

In its latest report, the Energy Information Administration (EIA) measured U.S. demand at 8.9 million barrels a day, which is a substantial 900,000 barrels a day drop from the previous week and a low reading not seen since February. The decrease in demand amid the spike in crude oil prices could help to keep gas price fluctuations more moderate through the end of the month.

Quick Stats

    The nation’s top 10 least expensive markets are: Mississippi ($2.32), Louisiana ($2.32), Arkansas ($2.33), Alabama ($2.34), South Carolina ($2.35), Oklahoma ($2.37), Virginia ($2.37), Texas ($2.38), Tennessee ($2.39) and Missouri ($2.40).

    The nation’s top 10 largest weekly increases are: Kentucky (+19 cents), Michigan (+18 cents), Georgia (+17 cents), Minnesota (+16 cents), Maryland (+14 cents), Iowa (+14 cents), Delaware (+14 cents), Mississippi (+14 cents), New Mexico (+13 cents) and South Carolina (+13 cents).