Gas Prices: Increased supply, weaker demand in Europe balance stronger demand in U.S.

Press release from AAA:

Today’s national average price for a gallon of gasoline is $2.86, down 2 cents from last week. One year ago, the price was $2.02. The New York State average is $2.91 – no change from last week. A year ago, the NYS average was $2.34.

AAA Western and Central New York (AAA WCNY) reports the following averages:

• Batavia -- $2.84 (down 1 cent since last week)
• Buffalo -- $2.83 (no change since last week)
• Ithaca -- $2.88 (no change since last week)
• Rochester -- $2.88 (down 1 cent since last week)
• Rome -- $2.93 (down 1 cent since last week)
• Syracuse -- $2.86 (down 1 cent since last week)
• Watertown -- $2.95 (no change since last week)

Growing stock levels have helped to put downward pressure on pump prices, according to the latest weekly report from the Energy Information Administration (EIA).

The national average decreased despite rising gas demand, which will likely continue through the Easter travel week.

Crude prices dropped last week due to continuing market concern that crude demand will drop as Europe increases restrictions to curb growing coronavirus infection rates and now hover at $60 to $64 per barrel.

There are concerns, however, that the blocked congested Suez Canal will stall slow the supply chain for petrochemical products coming from the Middle East, leading to a possible spike in prices.

From GasBuddy: 

"After the feverish rise in gas prices to start the year, increases have largely tapered off and we're now seeing decreasing prices in most areas of the country, thanks to oil prices that have moderated for the time being," said Patrick De Haan, head of petroleum analysis for GasBuddy.

"As the Suez Canal has remained was blocked for nearly a week, we could see some volatility in the price of oil this week as the market digests any updates as hundreds of ships remain in limbo.

"Back stateside, refiners have made the switch to summer gasoline and price impacts have been limited thus far, but demand for gasoline remains strong. Last week saw total gasoline demand at yet another pandemic high according to GasBuddy data.

"As we approach warmer weather and motorists are increasingly getting outside, it could drive prices higher, so long as COVID-19 cases don't jump along with it and lead to new travel restrictions."