The price of gasoline is down again this week on the local level, as well as statewide and nationally.
Throughout Western New York you can get a gallon of unleaded for approximately $2.25, according to AAA Western and Central New York. Prices are $2.20 in Rochester (down two cents from a week ago), $2.23 in Buffalo (down four cents from a week ago, and $2.27 in Batavia (down one cent from a week ago).
Today’s national average price for a gallon of gasoline is $1.77, down four cents since last week. One year ago, the price was $2.89. The New York State average is $2.18 – down four cents from last week. A year ago, the NYS average was $2.96.
Pump prices have consistently declined for nine weeks as Americans follow stay at home orders and crude prices remain low due to COVID-19. Data from the Energy Information Administration revealed that demand increased slightly from 5.1 million b/d (barrels per day) to 5.3 million b/d last week. An increase in demand may begin to slow the slide in pump prices, but prices will still be well below last year’s levels. When compared to a year ago, the national average today is $1.12 lower.
Domestic crude oil prices (West Texas Intermediate) hit negative territory last week for the first time in history. Domestic crude prices have since moved back into positive territory, but they remain volatile. Prices are being impacted by low demand along with geopolitical tensions between the U.S. and Iran, as well as reports that some participants are violating an OPEC agreement. The production reduction agreement between OPEC and major crude producers, including Russia, calls for a May 1st reduction in production, but some participants have started to cut production already. The agreement is expected to cut global oil production by 9.7 million b/d for May and June 2020 and continue with cuts into 2022.
