GUEST VIEW Report discusses gas price increases
Pennsylvania gas prices increased by 13 cents the week of Jan. 3 to $2.603 per gallon, according to AAA East Central’s Gas Price Report.
On the National Front
The New Year began with increased gas prices reaching today’s average of $2.35 per gallon.
The national average has moved higher for 35 of the past 36 days, largely due to market reactions to last fall’s OPEC deal.
Pump prices increased by 6 cents on the week, by 18 cents per gallon on the month, and are up by 36 cents on the year.
Retail averages in the Mid-Atlantic and the Northeast region continued to climb higher throughout the busy holiday travel weekend with drivers paying the highest New Year’s gas prices since 2014.
The new year also brings gas tax increases, 7.9 cents, for drivers in Pennsylvania.
Pennsylvania will see rates increase to 58.3 cents per gallon, the highest in the country.
Both crude oil benchmarks closed out the year posting the largest annual gains since 2009, with Brent gaining 52 percent and West Texas Intermediate gaining 45 percent to close the year.
These gains can largely be attributed to the OPEC agreement, a deal brokered by OPEC and non-OPEC countries to cut crude oil production by 1.8 million barrels per day in an effort to rebalance the global oil supply.
Additionally, as 2016 came to a close, U.S. gasoline production reached a record high of 10.537 million bbl for the last week in December.
Typically, domestic demand falls in January, so higher gasoline production may lead to a stock build in the coming weeks and could have a bearish market impact on gasoline.
In 2017, traders will continue to monitor whether participating countries adhere to the OPEC agreement and the rate at which U.S. gasoline production increases.
At the close of formal trading session on Dec. 30, 2016, on the NYMEX, West Texas Intermediate closed out the year down five cents to settle at $53.72 per barrel.
The week’s average gasoline prices:
Pennsylvania Average $2.603
Average price Dec. 27, 2016 $2.472
Average price Jan. 3, 2016 $2.159
Allentown-Bethlehem-Easton Average
$2.596
Average price Dec. 27, 2016 $2.459
Average Price Jan. 3, 2016 $2.163
Philadelphia Average ....................................$2.596
Average price Dec. 27, 2016 $2.455
Average Price Jan. 3, 2016 $2.179
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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Editor’s note: AA East Central is a not-for-profit association with 82 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members.