Statewide average gas prices edge up 8 cents

Gas prices in decline

DEARBORN, Mich. (WLUC) - AAA Michigan reports that the statewide average daily gas price increased about 8 cents. Michigan’s current daily statewide average is about $2.68 per gallon, about 8 cents more than last week’s average and about 16 cents more than this same time last year.

Metro Detroit’s average daily gas price increased about 4 cents. Metro Detroit’s current average is about $2.67 per gallon, about 4 cents more than last week’s average and about 20 cents more than this same time last year.

Of the ten Michigan metro areas surveyed by AAA for self-serve unleaded fuel prices, the lowest average price can be found in the Marquette area, where it’s about $2.60 a gallon. The highest average price can be found in the Jackson area, where it’s about $2.73 a gallon.

According to the latest reports from AAA:
State
Michigan ranked:
• 8th in the nation for most expensive average daily gas price
• 4th in the nation for biggest change in weekly average daily gas price (+8 cents)
• 2nd in the nation for biggest change in monthly average daily gas price (+23 cents)

Regional
• Across the region, gas prices have increased.
• Michigan is selling the most expensive gas in the region.
• With a 259,000 bbl. add, gasoline inventory sits at 48.1 million bbl., according to the EIA (week ending Dec. 22).
• The last time the region had inventory less than 50 million bbl. at the end of the year was in 2010.

National
• The national gas price average is the most expensive seen at the start of a new year since 2014, when gas prices were more than $3/gallon.
• High travel volumes over the holidays drove gas prices up.
• Pump prices shot up over the holidays.
• With the holiday season ending, motorists can expect gas prices to trend cheaper this month as we are likely to see a significant drop in gasoline demand.
• The latest Energy Information Administration (EIA) report measures gasoline demand at a strong 9.5 million b/d, which is typical of the holiday season.
• Historical data shows that in early January demand typical drops and stays below the 9 million mark for the first few months of the year.

Global
• Moving into 2018, prices are expected to continue rising as OPEC’s production reduction agreement will remain in place for the entirety of 2018.
• 2017’s increasing oil prices, especially in the fourth quarter, led to increased investment in production and drilling.
• This allowed the U.S. to reach its highest crude production level since April 1971.
• This represents a roughly 10 percent gain from the same month in 2016 and a 167,000 b/d increase from September 2017.
• For 2018, U.S. crude production is expected to hit 10 million b/d for the first time ever, helping the country to meet domestic demand and expand its export prowess to countries that have growing energy demands around the globe.



 
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