Planned Release of Oil Reserves Aids in Price Drop
Today’s national average price for a gallon of gasoline is $4.11, down 8 cents change from last week. One year ago, the price was $2.86. The New York State average is 4.22, down 7 cents from last week. A year ago, the NYS average was $2.89. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia – $4.28 (down 4 cents from last week)
- Buffalo – $4.28 (down 5 cents from last week)
- Rochester – $4.30 (down 5 cents from last week)
In the past week, the national average for a gallon of regular gasoline has decreased by eight cents. According to data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased while gasoline demand increased from 8.5 million barrels per day to 8.56 million. Although supply and demand factors would have typically supported elevated pump prices, the fluctuating price of oil continues to be the main factor influencing pump prices. Pump prices will likely face downward pressure if oil prices remain below $100 per barrel.
This morning, oil prices are hovering right around the $100 per barrel mark. They dropped after domestic crude stocks increased in the past week by 2.5 million barrels. Additionally, crude prices faced more downward pressure this week after the International Energy Agency’s (IEA) 31 member countries, including Mexico, Japan, Germany, and Canada, announced plans to release 120 million barrels of crude oil from their emergency oil stockpiles. The amount includes a previously announced 60 million barrels of oil from the U.S. It would be the second coordinated release in just over a month in response to spiking oil prices after Russia invaded Ukraine. The announcement has helped ease some supply concerns, pushing crude prices lower.