(News Release) -- National pump prices have risen for 20 of the past 21 days, rising a total of 11 cents during this span. The national average price for regular unleaded gasoline sits at $2.24 per gallon, which is the highest mark since October. Today’s average is three cents more than one week ago, nine cents more compared to one month ago and 24 cents more than the same date last year. Prices continue to rise due to market expectations of tighter availability following the announcement of an OPEC deal to cut oil production that is scheduled to start in January 2017.
The Midwest is often the most volatile area in the country for gas prices, and it is not uncommon for prices to move significantly from day to day. At the moment, the average prices in most states are heading up on the week with the exception of Michigan ($2.25) where drivers are paying five cents less. Average prices in other parts of the region have posted among the largest increases in the country over the past week: Indiana (+8 cents), Wisconsin (+7 cents), Ohio (+7 cents) and Illinois (+3 cents).
Oil Market Dynamics
Last week, markets continued to react to the OPEC production agreement as Saudi Arabia and Russia made clear their intentions to fully cooperate with the production cut. OPEC and non-OPEC members agreed this month to cut oil production collectively by 1.8 million barrels per day in an effort to rebalance the global oil market. In reaction to the OPEC agreement, U.S. interest in oil production has increased and drillers added 12 new oil rigs in the last week, bringing the total oil-rig count to 510 rigs nationwide, according to Baker Hughes Inc. Traders will continue to watch how OPEC and non-OPEC members move forward with the terms of the agreement and how U.S. oil producers react. At the close of Friday’s formal trading session on the NYMEX, WTI was up $1.00 to settle at $51.90 per barrel.
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 map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
Last Update: Dec 20, 2016 7:31 am CST
