West Central Kentucky gas prices jumped by almost a dime over the week, averaging at $2.330 per gallon, according to AAA East Central’s Gas Price Report.
Across the Great Lakes and Central regions, gas prices are as cheap as $2.20 in Missouri and as expensive as $2.60 in Michigan. On the week, Kentucky motorists saw a nine cent increase, while other states saw decreases. Throughout the year, the region has been one of the most volatile – seeing prices take large jumps and declines from week to week.
Gasoline inventories had a small decline of 26,000 barrels. At 47.8 million barrels, inventories are at a 3.3 million barrel deficit compared to this time last year
This week’s average prices: Western Central KY Average $2.330
Average price during the week of December 18, 2017 $2.236
Average price during the week of December 27, 2016 $2.228
Average prices of unleaded self-serve gasoline in various areas:
$2.359 Bowling Green
$2.230 Elizabethtown
$2.532 Louisville
$2.254 Owensboro
$2.276 Paducah
On the National Front
Heading into the final week of the year, the national average price for a gallon of gasoline is $2.44, an increase of two cents on the week. As more drivers hit the road for the holidays, the increase in driving demand is likely the cause for increases in some states. Despite the incremental jump, motorists in 33 states are paying less on the week – as much as nine cents. Today’s average is about 26 cents per gallon higher than a year ago.
At the close of Friday’s formal trading session on the NYMEX, West Texas intermediate was up 11 cents to settle at $58.47. The price of oil took a slight hit last week after EIA’s weekly report revealed another record for U.S. crude production, which stands at nearly 9.8 million b/d. Moreover, according to Baker Hughes, Inc., the U.S. active oil rig count remained the same as it did last week, holding steady at 747.
In addition, crude oil inventories declined by 6.5 million barrels, driven mostly by high crude processing rates at refineries across the country. Gross crude inputs for this month have been running consistently above 17 million b/d, which has never happened before 2017. As the year draws to a close, market observers will watch this week’s data from EIA to see if high gasoline demand eats away at crude inventories, or if high levels of domestic crude production will build inventories despite high gasoline demand.