West Central Kentucky gas prices continue to drop for a fourth week in a row saving drivers an additional three cents off a gallon this week as gas prices lowered to $2.120 per gallon, according to AAA East Central’s Gas Price Report.
On the National Front
Continual growth in the number of U.S. oil rigs and the increased drilling it implies are raising expectations for a climb in domestic oil production. Additionally, increased U.S. crude oil production coupled with lower driving demand has kept downward pressure on the national average price at the pump, which has fallen for 21 consecutive days. Today’s national average price for regular unleaded gasoline is $2.27 per gallon, down four cents versus one week ago, five cents less than one month ago, but 47 cents more per gallon year-over-year.
Prices in the Mid-Atlantic and Northeast followed the national average down this week. Wells Fargo attributes the region’s significantly low demand over the past month to higher than normal rainfall levels, which kept drivers off the road. Barring any unexpected impact to production or distribution, prices in the region should continue to drop this week due to low demand and healthy supply.
Markets opened Monday morning posting steady crude oil prices as a result of increased U.S. oil production. Oil-services firm Baker Hughes reported that drillers added 15 rigs in the U.S., bringing the total crude oil rig count to 556, the highest since November 2015. The increased U.S. production continues to offset OPEC’s efforts to rebalance the global oil market.
End of month surveys of OPEC production cuts are expected tomorrow and traders will be paying close attention to the cartel’s agreement compliance. Market watchers will also keep a close eye on U.S. production and the impact it has on supply and demand. At the closing of Friday’s formal trading session on the NYMEX, West Texas Intermediate was down 61 cents to settle at $53.17 per barrel.
This week’s average prices: Western Central KY Average $2.120
Average price during the week of January 23, 2017 $2.156
Average price during the week of February 1, 2016 $1.588
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$2.108 Bowling Green
$2.018 Elizabethtown
$2.099 Owensboro
$2.088 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.