West Central KY Gas Prices Remains Below National

West Central Kentucky drivers will enjoy another decrease in gas prices as gas dropped by four cents this week to $2.156 per gallon, according to AAA East Central’s Gas Price Report. 

On the National Front
The national average price of gas continues to decline as U.S. oil production increases. Today’s average price of $2.31 per gallon represents a decrease of three cents per gallon on the week, four cents per gallon on the month, and prices have moved lower for 14 of the past 15 days. Despite this recent trend lower, retail averages are up by 46 cents per gallon as compared to one year ago.

Prices in much of the Mid-Atlantic and Northeast have followed the national average down over the past week. The latest Energy Information Administration (EIA) report shows that total Northeast gasoline stocks increased by 3.4 million bbl to reach a total of 70.7 million bbl, which is the highest level since August 2016.

At Sunday’s OPEC meeting, energy ministers announced that the cartel has successfully limited oil output in an effort to reduce oversupply and support crude oil prices. At the meeting, OPEC announced that participating countries had already cut production by 1.5 million barrels per day. Eleven of OPEC’s 13 members along with 11 non-OPEC countries struck an agreement last November to cut production collectively by 1.8 million barrels per day for the first six months of 2017. Participating members also agreed to create a joint technical committee (JTC) to work with the OPEC Secretariat in assembling a production data report that will be released the 17th of every month, beginning in March.

OPEC’s production announcement did little to impact crude oil futures, which were trading lower early Monday. The drop is likely a result of an increase in U.S. oil production as evidenced by the 35 additional oilrigs reported by Baker Hughes. The introduction of these new rigs brings the total U.S. rig count to 694, which represents a significant increase in output counteracting OPEC’s production cut.  Traders will keep a close eye on how OPEC output cuts and increased U.S. production impact the market moving forward. At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate closed up $1.05 to settle at $52.42 per barrel.

This week’s average prices: Western Central KY Average                  $2.156
Average price during the week of January 17, 2017                            $2.195
Average price during the week of January 25, 2016                            $1.635

The following is a list of the average price of unleaded self-serve gasoline in various areas: 

$2.107       Bowling Green

$2.066       Elizabethtown

$2.280       Louisville

$2.183       Owensboro

$2.141       Paducah

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.
AAA East Central is a not-for-profit association with 82 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members.