Price Hikes In Ohio Rival Winter’s Brutality
A 14¢ surge in the price of gasoline in Ohio, coupled with significant gas price increases across the Midwest, contributed to a substantial about face in average prices for the region. The spike in prices was so significant, it pushed the national average gas price upward for the first time since the September 1, 2014 pricing survey. The latest weekly survey from the U.S. Energy Information Administration shows the average price of a gallon of regular unleaded is now $2.07, nationwide, essentially reversing last week’s price gain. But the numbers do not tell the entire story.
Removing the Midwestern region from the pricing formula, U.S. average gas prices would have gone down over 6¢ to settle at an average of $1.98. Prices in nearly all other survey districts were down, and while the pricing declines have slowed in recent weeks as crude oil prices stabilize and even rally, most drivers are not feeling the seasonal pinch on their wallet like they did last year at this time.
Diesel Fuel Prices Continue Falling
Meanwhile, diesel fuel continued to fall at a fair pace, as the U.S. average price for a gallon of diesel dipped to $2.83, down about four cents on the week. The prices in the New England states increased by a penny, but prices in all other regions were down. The West Coast, in particular, enjoyed a price drop of nearly 6¢ per gallon, while prices across the Lower Atlantic were down over 4¢.
The gas pricing trend, sans the anomalous Midwestern averages, has continued to favor the consumer, despite the fact crude oil prices were no longer declining at their formerly precipitous rate. In fact, West Texas Intermediate has rallied, along with U.S. domestic crude and Brent, over the past three trading sessions. Tuesday’s rally was so significant, it brought U.S. domestic crude back over the $50 per barrel mark. WTI crossed that threshold on Monday.
Crude Oil Could Turn Lower, Despite Recent Rallies, Says Expert
However, at least one market watcher tells CNBC he forecasts additional lows for crude oil. Stephen Schork of The Schork Report told the financial news network that he believes the current rally is just a “dead cat bounce,” and that crude oil still has significant declines ahead of it.
He pointed out that global daily demand has fallen by 1.6-million barrels of oil each day, and without demand, prices can not recover. “The bottom line here is, we do not have enough demand, and the demand is going to be weak for the next two to three months, and we have too much supply,” he said.