Slowly, but Steadily Gas Prices are Decreasing

09 December 2019

AURORA, Ill., (December 9, 2019) – At $2.57, the national gas price average is a penny cheaper on the week. The majority of states saw minimal movement at the pump in the last week, several saw decreases of up to four cents while fewer than a dozen states saw gas prices increase

Since the end of October, gasoline demand has mostly decreased as gasoline stocks have mostly increased, paving the way for cheaper gas prices. AAA expects stocks to continue to grow and drive gas prices even cheaper through year-end.

Today’s national average is a nickel cheaper than last month, but 15-cents more expensive than this time last year. 

Three Great Lakes and Central States land on the top 10 list for the country’s largest changes on the week which include Indiana experiencing a seven-cent increase and Illinois a 2-cent increase.  

Energy Information Administration (EIA) data shows that both regional refinery rates and gasoline stocks built on the week. Regional refineries rates bumped up 3% to 94% while stocks increased by 800,000 bbl. While many states saw gas prices increase, this combination helped to keep those changes minimal for motorists in the region.

 

 

Monday

Sunday

Week Ago

Month Ago

One Year Ago

National

$2.573

$2.577

$2.589

$2.624

$2.423

Chicago Metro

$2.775

$2.785

$2.715

$2.764

$2.481

Chicago City

$3.005

$3.001

$2.994

$2.990

$2.767

Bloomington

$2.555

$2.548

$2.557

$2.512

$2.180

Champaign

$2.435

$2.445

$2.544

$2.473

$2.232

Peoria

$2.632

$2.635

$2.670

$2.546

$2.228

Rockford

$2.582

$2.590

$2.602

$2.588

$2.387

Springfield

$2.503

$2.517

$2.520

$2.529

$2.271

Fort Wayne, IN

$2.395

$2.403

$2.406

$2.396

$2.199

South Bend IN

$2.521

$2.541

$2.407

$2.506

$2.339

Click here to view current gasoline price averages

 

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased by 77 cents to settle at $59.20. Crude prices rose after reports emerged that OPEC and its partners announced an agreement to cut crude production by an additional 500,000 b/d to help maintain prices amid market fears of slowing global demand. The new OPEC production reduction agreement brings the total production cut to 1.7 million b/d -- which is about 100,000 b/d more than projected -- beginning on January 1, 2020. The reduction in global crude supply is expected to help drain the market, which will likely be oversupplied during the first half of next year. It is unclear how long the new agreement will be in place, but OPEC will likely review it and announce any amendments at its next meetings on March 5 and 6 in Vienna, Austria.

One other contributing factor, if concerns around global crude demand due to the trade war between China and the U.S. ease this week, crude prices could increase again.

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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