CINCINNATI, Oh. (November 26, 2018)– On the heels of one of the busiest Thanksgiving holiday travel seasons since 2008, average pump prices in Ohio dropped 14-cents on the week placing the state in the top spot for the largest weekly decrease and among the top ten for least expensive in the nation.
The current average price for regular gas in Ohio is $2.28, 14-cents less on the week and 38-cents less than a month ago.
“Trends are indicating that the month of December may bring some of the cheapest gas prices of the year,” said Jenifer Moore, AAA spokeswoman. “Currently, 19 states already have gas price averages less expensive than a year ago so as U.S. gasoline demand remains low and supply plentiful, motorists can expect to save at the pump as long as the price of crude oil doesn’t spike.”
On the week, the national gas price average has dropped seven cents to land at $2.56. As pump prices steadily decline, they are headed toward some of the cheapest gas prices in 2018. The national average was lowest in January at $2.49 while May brought the most expensive price of $2.97.
Great Lakes and Central
The majority of the Great Lakes and Central states are carrying gas price averages cheaper than one year ago: Iowa (-20 cents), Indiana (-16 cents), Ohio (-15 cents), Michigan (-14 cents), Nebraska (-14 cents), Illinois (-11 cents), Missouri (-11 cents), Kentucky (-9 cents), Kansas (-7 cents), Wisconsin (-6 cents) and Minnesota (-2 cents). There are only 19 states in the country with less expensive year-over-year prices and 11 of those are in this region.
On the week, gas prices are as much as 14 cents cheaper in Ohio. Today, state gas price averages range from $2.58 in North Dakota to $2.18 in Missouri.
The week’s prior build in gasoline inventory for the region was cancelled out as stocks drew by nearly half a million according to the Energy Information Administration’s (EIA) latest data. Total stocks continue to register just above the 46 million bbl mark and year-over-year, inventory is at a 1.1 million bbl surplus. Despite the draw, regional utilization jumped seven percent to 91.4 percent indicating that stocks could build in the coming weeks and help to make prices even cheaper.
Oil market dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI dropped $4.21 and settled at $50.42. Oil prices plunged to their lowest point since October 2017 last week as EIA reported that crude inventories continue to build. The latest EIA weekly petroleum report showed that crude inventories grew by 4.9 million bbl to 447 million bbl. Total domestic crude inventories have grown for nine consecutive weeks, contributing to the crude prices dropping further. If this week’s EIA report shows another build, crude prices will likely continue their descent.
Growth in global crude production, including in the U.S., combined with weaker than expected global crude demand for the fourth quarter of 2018 have contributed to growth in global crude inventories. Market observers will now watch OPEC closely, which may decide to reduce its total crude production at its meeting next month. If OPEC, along with Russia, decides to reduce production, crude prices will likely increase due to the agreement.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
AAA provides automotive, travel, and insurance services to 59 million members nationwide and more than three million members in Ohio. AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years. AAA is a non-stock, non-profit corporation working on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel, and track their roadside assistance service with the AAA Mobile app (AAA.com/mobile) for iPhone, iPad and Android. For more information, visit www.AAA.com.