National Gas Prices Rise as Demand Grows
WASHINGTON, D.C. — As drivers in milder areas across the country take advantage of the weather by fueling up and hitting the road, the rise in gas demand and slightly more expensive oil are pushing the price of gas upward.
The national average for a gallon of gas increased by 12 cents since the week of Jan. 16 to reach $3.42 on Jan. 23. This week's national average is 33 cents more than a month ago and 10 cents more than a year ago, reported AAA.
"The recent rising temperatures led to rising pump prices," said Andrew Gross, AAA spokesperson. "And with the cost of oil hitting $80 a barrel, there is a lot of upward pressure on gas prices at the moment."
According to data from the Energy Information Administration, gas demand rose from 7.56 million to 8.05 million barrels per day last week as total domestic gasoline stocks increased by 3.5 million barrels to 230.3 million barrels. If demand remains robust, drivers will likely see pump prices rise through the week, according to AAA.
The nation's top 10 largest weekly increases are Colorado (31 cents), Delaware (28 cents), West Virginia (22 cents), Ohio (22 cents), Maryland (19 cents), Missouri (19 cents), Georgia (18 cents), Virginia (18 cents), Tennessee (18 cents) and Louisiana (18 cents).
The nation's top 10 most expensive markets include Hawaii ($4.94), California ($4.44), Washington ($4.06), Nevada ($3.95), Alaska ($3.72), Oregon ($3.71), Pennsylvania ($3.70), Colorado ($3.65), Washington, D.C. ($3.62) and Illinois ($3.56).
At the close of the formal trading session on Jan. 20, West Texas Intermediate increased by 98 cents to settle at $81.31. Crude prices rose at the end of last week due to increased market optimism that crude demand may be more robust than expected this year. Particularly, the re-opening of China's economy, despite high coronavirus infection rates, will help to bolster global crude demand, while supporting elevated prices. For this week, crude prices could continue to climb if ongoing market optimism persists, AAA reported.