Will falling oil prices bring relief at the pump? Kentucky loses another 2 cents
AAA: Bourbon at $ 2.96, Jessamine at $ 2.98, Garrard at $ 2.96, Lincoln at $ 2.99, Boyle at $ 2.96, and Mercer at $ 2.99 are under $ 3
LEXINGTON, Ky. (WTVQ / AAA) – After remaining stubbornly above $ 80 a barrel since Labor Day, the price of crude oil fell this week in the mid-1970s, which could help push down gas prices, although the relief may be temporary. .
Fears of a slowdown in economic activity in the United States and Europe due to a resurgence of COVID-19, along with reports that the Biden administration is calling for the release of oil stocks by the big guys oil-consuming countries are exerting downward pressure on crude prices.
Gas prices in Kentucky also fell again last week. Today’s average of $ 3.08 for a gallon of regular unleaded gasoline is 2 cents lower than a week ago. The price is now 2 cents lower than a month ago, but still $ 1.16 higher than a year ago at this time.
“The price of crude oil is about 50 to 60% of what consumers pay at the pump, so a lower oil price should translate into better gasoline prices for drivers,” said Lori Weaver Hawkins , public affairs manager at AAA Blue Grass. “But until global oil production returns to pre-pandemic levels, this recent drop in crude prices may be only temporary.”
The current national average of $ 3.40 is 3 cents more than a month ago and $ 1.29 more than a year ago, and 81 cents more than in 2019.
According to new data from the Energy Information Administration (EIA), total national gasoline stocks fell by 700,000 barrels to 212 million barrels last week. Demand for gasoline also declined slightly, from 9.26 million barrels per day to 9.24 million barrels per day. Lower demand, combined with inventory, helped stabilize prices at the pump. However, gasoline prices are likely to remain high as long as oil prices are near or above $ 75 a barrel.
Gas prices in central and eastern Kentucky continue their downward trend
Gas prices in central and eastern Kentucky continued to decline slightly in most counties.
Lexington dropped a dime to land at $ 3.05 a week. That’s 4 cents less than a month ago, but still $ 1.05 more than this time in 2020, when demand was unusually low due to the pandemic.
At least half a dozen counties in central and eastern Kentucky are now on average below the $ 3 mark, including Bourbon at $ 2.96, Jessamine at $ 2.98, Garrard at $ 2.96 , Lincoln at $ 2.99, Boyle at $ 2.96 and Mercer at $ 2.99. Boyle is actually up 2 cents from a week ago, but still below the $ 3 mark while Garrard lost 3 cents on the week and Jessamine is holding on. Bourbon saw its average price drop by one nickel over the week, while Mercer and Lincoln counties both fell 3 cents.
Other counties in the region that hold close to the $ 3 mark are Laurel at $ 3, and Pulaski, Mason and Woodford counties, all at $ 3.01, and Bell County at $ 3.02.
For those traveling to the region, Kentucky’s average of $ 3.08 per gallon remains one of the lowest in the region, with several neighboring states continuing to see gasoline prices climb. Average gas in Kentucky remains 3 cents cheaper than in Tennessee, which saw a drop of 2 cents to $ 3.11 on the week. Ohio is down 4 cents to $ 3.22, while Indiana is also down 4 cents, now at $ 3.32.
Prices at the pump in Kentucky continue to be on average 24 cents lower than in West Virginia, which has now fallen 2 cents to land at $ 3.34. Virginia saw nickel decline on the week, averaging $ 3.25, while Kentucky is now one dime higher than Missouri, which sits at $ 3.07 after losing an additional 2 cents on the week. Illinois remains the highest point, averaging $ 3.58 for gasoline after another 2-cent rise on the week.
Motorists can search for the cheapest gasoline in their area with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more about AAA.com/mobile or search your device’s app store.
The top of the nation 10 biggest weekly changes: Florida (+9 cents), Arizona (+7 cents), Washington, DC (−5 cents), Michigan (−5 cents), Texas (−5 cents), Indiana (−5 cents), Ohio (−4 cents) ), Kansas (−4 cents), Oklahoma (−3 cents) and California (+3 cents).
The Nations top 10 most expensive markets: California ($ 4.71), Hawaii ($ 4.34), Nevada ($ 3.98), Washington ($ 3.88), Oregon ($ 3.78), Arizona ($ 3.74), Alaska ($ 3.72), Utah ($ 3.70), Idaho ($ 3.69), and Pennsylvania ($ 3.60).
Dynamics of the oil market
At the close of Friday’s official trading session, WTI fell $ 2.91 to $ 76.10. Crude prices fell late last week as the dollar strengthened and market concerns over demand for crude increased amid rising COVID infection rates in Europe and the United States. United. prices will likely follow. Additionally, crude prices fell last week despite the EIA’s weekly report showing that the total domestic supply of crude fell by 2.1 million barrels to 433 million barrels. Compared to the end of November 2020, the current total domestic supply of crude is almost 12% lower than last year.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more about AAA.com/mobile.
AAA is the most comprehensive resource for gas prices. Unlike the Lundberg survey of around 7,000 gas stations and Gas Buddy reports which are based on customer feedback, the AAA gas price reports reflect real credit card transaction prices over 100,000 service stations in the USA