23 March 2021

MADISON, Wis., (March 22, 2021) – After weeks of seeing almost daily increases, the national gas price average is showing signs of stability, holding steady at $2.88 for the last 5 days. Still, today’s average is the highest price since May 2019 and is more expensive on the week (+2 cents), month (+25 cents) and year (+74 cents).

“A dip in demand along with a simultaneous increase in supply and refinery utilization has contributed to slower movement in gas price increases,” said Nick Jarmusz, director of public affairs for AAA – The Auto Club Group. “On the week, 32 states had increases of only 3 cents or less. This does not mean gas prices have hit their peak, but is a positive sign for consumers.”

In its latest weekly reports, the Energy Information Administration (EIA) shows demand decreased from 8.7 million b/d to 8.4 million b/d indicating that Americans are slowly returning to the road, likely due to more schools opening and spring break. Further, supply increased from 231.6 million bbl to 232 million bbl. While still one of the lowest levels of 2021, the increase in supply is promising especially alongside increasing refinery utilization rates, which jumped from 69% to 76%. That is just 7 percentage points away from utilization levels before February’s Texas winter storm.

Further aiding the more modest jumps at the pump in the last week is the lower price of crude oil. Crude averaged around $63/bbl, down $2/bbl from the previous week’s average of $65/bbl.

In the week ahead, motorists can expect fluctuation at the pump. However, large jumps are not likely for the majority of consumers.

 

 

Monday

Sunday

Week Ago

Month Ago

One Year Ago

National

$2.882

$2.882

$2.864

$2.635

$2.140

Wisconsin

$2.671

$2.679

$2.696

$2.648

$1.840

Appleton

$2.556

$2.571

$2.603

$2.475

$1.643

Eau Claire

$2.740

$2.746

$2.822

$2.643

$1.701

Green Bay

$2.639

$2.640

$2.659

$2.503

$1.847

Janesville-Beloit

$2.644

$2.649

$2.671

$2.531

$1.739

La Crosse

$2.778

$2.776

$2.775

$2.639

$1.556

Madison

$2.643

$2.648

$2.668

$2.513

$1.842

Milwaukee

$2.614

$2.622

$2.641

$2.523

$1.804

Wausau

$2.684

$2.687

$2.730

$2.595

$2.006

Click here to view current gasoline price averages

 

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by $1.42 cents to settle at $61.42. Although the price of crude increased (Friday) after Saudi Arabia reported a drone attack on an oil facility that caused a fire but no injuries or damage, crude prices declined on the week due to market concern that demand may stumble as some countries restart coronavirus restrictions to curb growing infection rates. The decrease in crude prices was also supported by EIA reporting that total crude inventories increased by 2.4 million bbl to 500.8 million bbl. For this week, crude prices may decline further if demand concerns persist.

Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

 

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