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AAA: Small Rise at the Pump in KY; National Average Moves Downward

AAA: Small Rise at the Pump in KY; National Average Moves Downward

Bill Stephens

July 27th, 2020


Gas prices in West Central Kentucky are a penny higher this week at $1.987, according to AAA East Central’s Gas Price Report.

Motorists in the Great Lakes and Central states are seeing savings at the pump on the week. With a decrease of as much as a nickel, these states land on the top 10 list for largest weekly decreases: Michigan (-5 cents), Indiana (-4 cents), and Wisconsin (-2 cents). At $2.36, Illinois carries the most expensive average in the region and Missouri ($1.90) has the least expensive.

After a one-week build, stocks declined by 600,000 barrels to push total levels back to 50 million barrels. Since late May, when many states started to re-open, regional stocks have declined by 5 million barrels, according to Energy Information Administration (EIA) data. Total measurement levels are reflective of the typical summer time in the region.

This week’s average prices: Western Central KY Average                            $1.987
Average price during the week of July 20, 2020                                              $1.972
Average price during the week of July 29, 2019                                              $2.520
Average prices of unleaded self-serve gasoline in various areas: 

$1.960        Bowling Green
$1.950        Elizabethtown
$2.223        Louisville
$1.839        Owensboro
$1.961        Paducah

On the National Front
As COVID-19 case numbers surpass 4 million, demand for gasoline is weakening across the country. The latest EIA demand reading measures at 8.5 million b/d, which is about 11% less than a year ago. The lower demand contributed to a cheaper national average on the week – down one penny to $2.18. This is the first time since late April that the national average has declined.

Today’s national average ($2.18) is one cent more than last month and 56 cents cheaper than last year. Motorists can find gas for $2.25 or less at 70% of gas stations across the country.

At the end of Friday’s formal trading session, West Texas Intermediate increased by 22 cents to settle at $41.29 per barrel. Domestic crude prices increased due to a slight decrease in the value of a U.S. dollar. However, crude prices could fall this week, since EIA’s weekly report revealed that total domestic inventories increased by 4.9 million barrels. The increase, amid falling gasoline demand, could mean that the domestic crude market is oversupplied.

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