Gasoline Prices Increase A Penny in W. Pa.

The average price of gasoline across Western Pennsylvania is a penny higher this week at $2.758 per gallon, according to AAA East Central’s Gas Price Report.

Most Mid-Atlantic and Northeast states have gas prices that are cheaper or stable compared to last week. Only four states saw upward movement at the pump this week: Delaware (+9 cents), Maryland (+3 cents), Tennessee (+2 cents) and Pennsylvania (+1 cent).

Gasoline stocks decreased by 1.4 million barrels this week, dropping levels to 63.6 million. According to Energy Information Administration (EIA) data, stocks in the region have mostly been building since July. This is the largest draw seen during this timeframe, bringing levels to a 3.1-million-barrel deficit compared to this time last year. Following the attacks over the weekend on two major Saudi Arabian oil facilities, motorists in the region may see fluctuations at the pump if crude oil prices continue to increase. Further analysis on these attacks can be found below in the “On the National Front” section of this report.

This week’s average prices: Western Pennsylvania Average $2.758

Average price during the week of September 9, 2019 $2.747

Average price during the week of September 17, 2018 $3.128

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

$2.552 Altoona

$2.749 Beaver

$2.874 Bradford

$2.719 Brookville

$2.720 Butler

$2.693 Clarion

$2.694 Du Bois

$2.818 Erie

$2.762 Greensburg

$2.798 Indiana

$2.768 Jeannette

$2.715 Kittanning

$2.688 Latrobe

$2.795 Meadville

$2.898 Mercer

$2.656 New Castle

$2.792 New Kensington

$2.811 Pittsburgh

$2.754 Sharon

$2.784 Uniontown

$2.885 Warren

$2.752 Washington

On the National Front

On the week, the national gas price average held steady at $2.56, but motorists can expect volatility at the pump in the coming days and weeks. Over the weekend, Saudi Arabia experienced drone attacks on two major oil facilities – including the world’s largest, Abqaiq. The attacks have taken 5.7 million crude barrels per day off the market, accounting for about 6% of the global supply.

Despite a global glut of crude oil, initial market reaction to the attacks increased crude prices. At the start of the work week, crude oil (West Texas Intermediate, WTI) is trading for $5/barrel more than on Friday’s closing, up to $61/bbl – a price point for crude not seen since May.

Americans may see local pump prices start to increase this week, though it is not clear by how much. Whether this is a short- or long-term trend will be determined by the price of crude oil and how quickly the facilities in Saudi Arabia can recover and get back online. To ease concerns, President Trump said he has authorized the release of crude from the Strategic Petroleum Reserve. Other Saudi-oil-consuming countries also have emergency reserves to help back-fill the global loss, if needed.

Notably, the U.S. currently depends less on crude imports from Saudi Arabia. The latest EIA report showed that the U.S. is currently importing the least amount of crude oil from Saudi in this decade. In the first half of this year, on average the U.S. imported about 18,000 barrels, compared to 35,600 barrels in the first half of 2017. Moreover, while U.S. gasoline stock levels have been decreasing the past few weeks, total domestic stocks sit at 228 million barrels, which is ahead of the five-year average for this time of year by several million bbl.

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