Gas Prices Take Another Jump

The average price of gasoline across Western Pennsylvania is 13 cents higher this week at $2.884 per gallon, according to AAA East Central’s Gas Price Report.

Four Mid-Atlantic and Northeast states saw gas price averages jump by as much as a dime this week (Pennsylvania, +9 cents). However, most states in the region saw a minimal impact following last weekend’s drone attacks on Saudi Arabian oil facilities, with many states switching over to winter-blend gasoline last week. This blend is cheaper to produce and sell, compared to summer-blend. This switch had set the stage for a decrease at the pump, which helped ease the effects of increases in the oil and gasoline markets.

Gasoline stocks decreased significantly for a second week, this time by 1.2 million barrels. Total stocks now measure 62.3 million barrels, a nearly 3.5-million-barrel deficit compared to this time last year. Gas prices in the region may fluctuate in the weeks ahead as the market continues to adjust to dynamics in the crude market.

This week’s average prices: Western Pennsylvania Average was $2.884. Average price during the week of September 16, 2019 was $2.758. Average price during the week of September 24, 2018 was $3.118.

The average price of unleaded self-serve gasoline in various areas:

$2.645      Altoona
$2.933      Beaver
$2.959      Bradford
$2.865      Brookville
$2.856      Butler
$2.865      Clarion
$2.859      Du Bois
$2.961      Erie
$2.888      Greensburg
$2.899      Indiana
$2.968      Jeannette
$2.868      Kittanning
$2.833      Latrobe
$2.890      Meadville
$2.947      Mercer
$2.765      New Castle
$2.937      New Kensington
$2.927      Pittsburgh
$2.882      Sharon
$2.950      Uniontown
$2.959      Warren
$2.800      Washington

On the National Front
Last week was the first time since early June that the national gas price average jumped by more than a nickel in under a few days. On the week, it’s a dime more expensive at $2.66 with half of states seeing prices increase by 10 cents or more. However, even with the significant increase, the national average is still cheaper compared to last month (-6 cents) and last year (-19 cents).

Spurred by the Saudi Arabian oil facilities attacks, crude oil (West Texas Intermediate – WTI) increased as much as $10/barrel at its highest point early last week to nearly $64/barrel. Wholesale gasoline distributors reacted by raising their prices by as much as a quarter, which pushed the national average up six cents overnight last Tuesday. However, by the end of last week, crude was down to $58/bbl
and gas prices started to stabilize as reports surfaced that Saudi facilities should be fully operational by end of September.

Even with the downward movement with crude oil prices and stabilization at gas pumps, Americans can expect some fluctuation through the end of the month. Should Saudi’s crude production be back to full capacity by the end of the month, the currently pump increases are likely to be temporary.

In its latest report, the EIA measured U.S. demand at 8.9 million b/d, which is a substantial 900,000 b/d drop from the previous week and a low reading not seen since February. The decrease in demand could also help to keep gas price fluctuations more
moderate through the end of the month.

Motorists can find current gas prices nationwide, statewide, and countywide at GasPrices.AAA.com