(June 20, 2016) — West Central Kentucky gas prices have dipped 11 cents to $2.231 a gallon, according to AAA East Central’s Fuel Gauge report. The national average is $2.332.
|West Central Kentucky average price last week:
|Average price during the week of June 22, 2015:
The following is a list of the average price of unleaded self-serve gasoline in various areas:
On the National Front
Gas prices have fallen for nine consecutive days, reaching today’s average of $2.33 per gallon. Gasoline demand remains on track to set a new all-time high for the 2016 summer driving season, however, crude oil remains relatively less expensive than recent years; which is contributing to direct savings at the pump. Averages are down 46 cents per gallon versus this same date last year, attributed year-over-year surpluses, and these savings are likely to continue as supply appears more than capable of keeping pace with growing demand.
Pump prices generally peak during the summer months, due to imbalances in supply and demand. Unlike many recent years, supply appears to be meeting the growing demand and as a result prices have held relatively steady and markedly lower than one year ago. On the whole, refineries are keeping up with growing demand and expectations of increased production from Western Canada and the U.S. are likely to keep global crude oil prices relatively lower. The combination of the above mentioned factors is contributing to prices at the pump remaining at some of their lowest levels since 2005, and these comparative savings should persist, barring and major disruptions in production or supply.
Oil Market Dynamics
Crude oil prices continue to swing on speculations of increased production and market dynamics related to the geopolitical issues. Both primary global benchmarks, West Texas Intermediate and Brent Crude, opened the week with gains credited to questions surrounding whether the U.K will exit the European Union, and what, if any impact it will have on the global oil market and the U.S. dollar. News about U.S. gasoline demand and the U.S. dollar are also expected to influence crude oil prices in the near term – both factors tend to lead to fluctuations in the price drivers pay at the pump. After reaching its lowest settlement price since May 13 earlier in the week, WTI closed out Friday’s formal trading session on the NYMEX, up $1.77 to settle at $47.98 per barrel.
AAA East Central is a not-for-profit association with 83 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members.