Local gas prices are relatively flat from a week ago with the price of a gallon of gas up two cents in Rochester (to $2.98) but down a penny in Buffalo (to $2.96).
Today’s national average price for a gallon of gasoline is $2.87, which is up just a penny from last week. One year ago, the price was $2.26. The New York State average is $3.02, which is up one cent from last week. A year ago, the NYS average was $2.42.
Crude prices trended lower last week following EIA’s report that showed U.S. crude oil inventories increased by a total of 1.3 million bbl last week. This is the first time in three weeks the U.S. has seen a build in inventories, which typically see drawdowns throughout the summer. At 417.9 million bbl, crude inventories in the U.S. are 85 million bbl lower than they were at this time last year.
The surprise build in total crude stocks gave market observers pause amid a slew of other factors influencing the oil market, including increasing geopolitical factors – in Iran, Libya, and Venezuela – potentially destabilizing global supply. This week, market observers will be watching these factors to determine the impact on supply. If it appears that supply could be reduced, prices may increase – supporting higher gas prices than last summer.
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