Friday, 29 March 2024

Despite strong supplies, gas prices on the move

EMERYVILLE, Calif. – Even though U.S. production hits record levels and global supplies are strong, gasoline prices moved higher this past month.

Tuesday's state prices are registering at $3.43 on average for a gallon of unleaded gasoline – that’s $0.78 more than prices since AAA Northern California’s latest monthly gas survey of February 10, 2015.

Northern California’s average price for a gallon of regular unleaded gasoline is $3.37 – that’s $0.75 more than last month’s AAA reported price on Feb. 10.

The least expensive average price in Northern California can be found in Marysville, where regular unleaded gasoline is $3.21 per gallon.

Of all metro areas tracked by AAA in Northern California, San Mateo registers the highest price at $3.47 per gallon of unleaded regular.

“Retail gas prices typically trend higher this time of year as suppliers undergo maintenance and plan to reduce winter grade fuel in preparation for the changeover to summer-grade gasoline, which is more costly to produce.” said Cynthia Harris, AAA Northern California spokesperson. “State and regional refinery maintenance issues have contributed to rising pump prices as well.”

West Coast markets have seen dramatic run-ups over the last several weeks due to a number of supply issues.

An explosion last month at ExxonMobil’s refinery in Torrance, Calif., has kept that facility running at severely reduced rates.

Production at Tesoro’s refinery in Martinez, Calif., also remains limited as it aims to restart after recent planned maintenance.

According to AAA’s Fuel Gauge Report, the national average price is $2.45. The current average is the same as yesterday, $0.01 higher than a week ago, an increase of $0.26 from a month ago and $1.04 lower than a year ago.

California has the highest price in the country at $3.43 due to refinery problems and supply issues. Hawaii, at $3.14, and California are the only states reporting average prices over the $3 mark.

The global price of crude oil remains volatile due to speculations about possible production cuts due to oversupply and news of rising global demand.

Absent any intervention from OPEC, global prices are expected to continue to fluctuate as markets attempt to self-regulate and find balance. U.S. production continues to hit record levels, and stockpiles have climbed to their highest weekly levels since the Energy Information agency, EIA, started collecting statistical data on the subject in 1982.

Abundant domestic supply has also kept the spread between WTI and Brent crude relatively wide. The gap in price currently stands at about $10 per barrel.

Historically, when the global market is balanced, the disparity in benchmark pricing is around plus or minus $2 per barrel; however the spread has varied widely over the past several years.

At the close of Friday’s formal trading on the NYMEX, WTI closed down $1.15 settling at $49.61 per barrel. 

To get the best mileage possible, AAA recommends keeping tires at the recommended pressure suggested by the vehicle manufacturer, performing routine maintenance and making sure fluids are clean and belts and hoses are in good repair.

The way you drive can also impact fuel economy. Smooth driving to avoid sudden stops and starts, combining trips and lightening a vehicle’s load also help to conserve gasoline.

AAA Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.

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