(GNB, Washington DC): March could be the most expensive month at the pumps this year, predicting the national gas price average to hit at least $2.80 this month.
Since Monday, the national average for a gallon of regular gasoline has increased by two cents to $2.74. Rising crude prices, tightening gas supplies, and increased gas demand have contributed to drivers seeing higher prices at the pump, AAA reports.
According to new data from the Energy Information Administration (EIA), total domestic gas stocks decreased by 13.6 million bbl to 243.5 million bbl, as demand increased from 7.2 million b/d to 8.15 million b/d last week. If these trends continue alongside higher crude prices, drivers can expect incremental price increases — of at least nickel — at their local gas stations in March.
At the close of Thursday’s formal trading session, WTI increased by $2.55 to settle at $63.83, AAA reports.
AAA reports crude prices increased this week after the Organization of the Petroleum Exporting Countries (OPEC) decided with its allies, including Russia, to maintain existing crude production cuts of 7 million b/d through April.
Additionally, Saudi Arabia — a member of OPEC — agreed to extend its voluntary production cut of 1 million b/d by one month. Crude prices have increased despite EIA’s latest weekly report revealing that total domestic inventories grew by 21.6 million bbl to 484.6 million bbl last week.
Since last Thursday, these 10 states have seen the largest increases in their averages:
Utah (+20 cents), Colorado (+13 cents), Wyoming (+12 cents), Idaho (+12 cents), Arizona (+12 cents), Nevada (+11 cents), Kansas (+10 cents), Oklahoma (+10 cents), New Mexico (+10 cents) and Florida (+9 cents)
Last month’s jump was mainly driven by refinery issues caused by arctic weather in Texas. Other factors were tightening global fuel supplies and continued optimism that the COVID-19 vaccine and stimulus money would help boost fuel demand, according to the auto club.
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