Valley gas prices decrease

Average price during the week of March 6, $3.664

Average price during the week of March 14, 2022, $4.461

Trend analysis

The national average for a gallon of regular gasoline increased seven cents since last week to $3.47 even though demand and the global cost of oil have fallen recently. The higher prices are mainly due to the switch to summer blend gasoline, which can add five to ten cents per gallon. Today’s national average of $3.47 is three cents more than a month ago but 79 cents less than a year ago.

According to new data from the Energy Information Administration (EIA), gas demand declined from 9.11 million to 8.56 million barrels per day last week. Meanwhile, total domestic gasoline stocks decreased by 1.1 million barrels to 238.1 million barrels last week. Although gas demand has declined, fluctuating oil prices have increased pump prices amid tighter supply.

At the close of Wednesday’s formal trading session, West Texas Intermediate decreased by 92 cents to settle at $76.66. Crude prices dropped after the Chair of the U.S. Federal Reserve indicated that additional interest rate increases are likely.

The market is concerned that rising interest rates could tip the U.S. economy into a recession, which would lower oil demand amid reduced economic activity. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 1.7 million barrels to 478.5 million barrels last week.

Motorists can find current gas prices nationwide, statewide, and countywide at gasprices.aaa.com.