AAA reported the national average price for gasoline rose 8 cents a gallon in the past week. The move higher followed a similar surge in oil prices.
AAA reported the national average price reaching $3.27 a gallon, the highest average national price since October 2014. The average is 10 cents a gallon more than a month ago, $1.09 a gallon more than a year ago and 63 cents a gallon more than pre-pandemic in 2019.
“The key driver for this recent rise in the price of gas is crude oil, which typically accounts for between 50% and 60% of the price at the pump,” AAA spokesperson Andrew Gross said. “Last week’s decision by OPEC and its oil-producing allies to not increase production further only exacerbated the upward momentum for crude oil prices.”
Crude prices rose after OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC), Russia, and their allies, did not move forward with an agreement to produce 800,000 barrels a day in November. Instead, OPEC+ will maintain a previously agreed upon increase of 400,000 barrels a day.
According to new data from the U.S. Energy Information Administration, total domestic gasoline stocks increased last week as gasoline demand increased slightly. AAA said the slight increase in gas demand aided in prices rising but attributed the main culprit to high crude prices above $74 a barrel.
