Illinois ($2.29) ranks as the 7th most expensive state average in the country; Indiana ($2.07) sees a weekly increase of +12 cents

08 June 2020

AURORA, Ill., (June 8, 2020) – For 66 days, the national gas price average held below the $2/gallon mark, pushing as cheap as $1.76. In the past week, the average has inched up to $2.03. Despite the consistent increases at the pump, prices are still significantly cheaper year-over-year. In fact, during the first week of June the past five years, gas prices have typically averaged $2.81.

“The beginning of June has not seen gas prices this low since 2004,” said Molly Hart, spokesperson for AAA – The Auto Club Group. “As crude oil prices trend higher and gasoline demand increases, Americans will see gas prices push more expensive, but this summer will be cheaper than last.”

U.S. gasoline demand continues to show increasing strength. The Energy Information Administration’s (EIA) latest reading shows a 4% weekly increase at 7.5 million b/d. That is the highest demand level since states began issuing stay-at-home orders in mid-March.

Gasoline stocks in the Great Lakes and Central States drew by about 600,000 bbl to push total stocks down to 54.4 million bbl, according to EIA data. The small draw, combined with mostly steady refinery rates, will likely help to keep any price increases in the week ahead minimal.

 

Monday

Sunday

Week Ago

Month Ago

One Year Ago

National

$2.030

$2.022

$1.978

$1.826

$2.758

Chicago Metro

$2.431

$2.432

$2.382

$2.204

$3.131

Chicago City

$2.667

$2.663

$2.518

$2.306

$3.394

Bloomington

$2.226

$2.234

$2.157

$1.948

$2.686

Champaign

$2.243

$2.246

$2.223

$2.109

$2.622

Peoria

$2.237

$2.245

$2.215

$2.020

$2.767

Rockford

$2.190

$2.187

$2.117

$1.885

$2.789

Springfield

$2.144

$2.142

$2.005

$1.934

$2.668

Fort Wayne, IN

$2.091

$2.091

$1.976

$1.799

$2.691

South Bend IN

$2.079

$2.082

$1.958

$1.812

$2.721

Click here to view current gasoline price averages

 

Oil Market Dynamics

At the end of Friday’s formal trading session, WTI increased by $2.14 to settle at $39.55 per barrel. At the end of last week, crude prices increased amid market optimism that the Organization of the Petroleum Exporting Countries (OPEC) and other major crude exporters, including Russia, would extend their 9.7 million b/d production reduction agreement for May and June 2020 into July. Over the weekend, the cartel and its partners agreed to extend the deal for July, which is expected to reduce global crude supplies by nearly 10 percent while global crude oil demand remains low due to COVID-19. Crude prices will likely increase this week in reaction to OPEC’s announcement.

Additionally, approximately one third of crude oil and natural gas production in the Gulf of Mexico has been halted, as Tropical Depression Cristobal makes landfall in Louisiana. The storm is expected to bring tropical-storm force winds and potential storm surge and flooding to the state’s coastal areas. There is no estimate for when the facilities will resume operations. Facilities will likely be inspected after the storm has passed to determine if personnel can return safely. Any impact on domestic crude prices will depend on how long production remains shuttered and the extent of damage caused by the storm.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

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