AAA: Gas Prices Climb in Kentucky; Crude Prices Near $90 Per Barrel

Gas prices in West Central Kentucky are seven cents higher this week at $2.997, according to AAA East Central’s Gas Price Report.

This week’s average prices: Western Central KY Average                $2.997
Average price during the week of January 24, 2022                           $2.923
Average price during the week of February 1, 2021                           $2.246 

Average prices of unleaded self-serve gasoline in various areas: 

$3.094        Bowling Green
$3.016        Elizabethtown
$3.055        Louisville
$2.936        Owensboro
$2.886        Paducah

Trend Analysis:

Crude oil prices continue their upward climb this week, closing in on $90 per barrel. Higher oil prices typically lead to higher pump prices for motorists and today’s average is no exception. The national average for a gallon of gas has risen to $3.36, three cents more than a week ago. Uncertainty over Russia’s intentions toward Ukraine is contributing to higher crude oil prices and any sanctions based on their actions toward Ukraine may cause Russia to withhold crude oil from the global market.

At the close of Friday’s formal trading session, West Texas Intermediate increased by 21 cents to settle at $86.82. The cost of crude oil rose last week despite the Energy Information Administration (EIA) reporting that total domestic crude stocks increased by 2.4 million barrels to 416.2 million barrels. The current crude stock level is approximately 13 percent lower than in mid-January 2021, contributing to pressure on domestic crude prices.

According to new data from the EIA, total domestic gasoline stocks grew by 1.3 million barrels to 247.9 million barrels last week. On the other hand, gasoline demand rose slightly from 8.22 million barrels per day to 8.51 million barrels per day. The increase still puts gas demand in a typical range for the winter driving season, which pre-COVID was 8.8 million barrels per day in mid-January 2020. Continued growth in crude oil prices has helped maintain elevated pump prices. If oil prices continue to climb toward $90 a barrel, pump prices will likely follow suit.

Today’s national average of $3.36 is eight cents more than a month ago and 94 cents more than a year ago.

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