WASHINGTON -- Crude-oil prices hit a 2015 high this week, up nearly 3% to reach a five-month peak, Reuters reported. And AAA reported that the national average retail price of gasoline has risen around seven cents per gallon (CPG) during the week prior as domestic crude costs hit their highest point so far for 2015.
Prices rose as continued strikes by Saudi Arabia in Yemen raised concerns about Middle East oil supply, said Reuters, and oil buyers bet that a recent downward trend in U.S. production would continue.
Data from the Energy Information Administration (EIA) showed that domestic oil production had declined for the third time in the last four weeks. Oil prices, meanwhile, jumped by up to $10 per barrel in April on Middle East concerns and an indication of growing global demand for automotive fuels.
The price of U.S. crude rose 2.8% to hit $58.02 a barrel, and hit a 2015 high with a session peak of $58.41 per barrel. According to Reuters, front-month U.S. gasoline increased 7 cents, or up 4%, after reaching a late-November peak of about $2 per gallon.
“The Saudi escalation of its Yemen campaign is producing exactly the kind of geopolitical tensions oil is known to rally for,” Gene McGillian, senior analyst at oil markets advisory firm Tradition Energy told the news agency. “You also have the assumption that U.S. production will continue to decline from cutbacks in oil-rigs count and exploration expenditures.”
The price increases are taking place as global and U.S. crude oil supplies continued to grow. According to EIA, crude stockpiles in the United States swelled by 5.3 million barrels last week to hit a record 489 million barrels.
Separately, in an April 20 analysis, AAA reported that the national average retail price of gasoline has risen around seven CPG; however, the national average of $2.46 per gallon on April 20 was the lowest average for that date since 2009, when it was at $2.06 per gallon.
Regionally, the West Coast saw the highest average retail prices, even as California gasoline production reportedly hit a four-month high. AAA cited the ExxonMobil refinery in Torrance, Calif., which is still seeing repairs from an explosion in February that are not set to be completed until July.
“Regional prices may remain stubbornly high and sensitive to further production issues until that facility is back to full strength,” AAA said.
California had the highest state retail gasoline price average in the country at $3.15 per gallon as of April 20, followed by Hawaii ($3.07) and Alaska ($2.98).
Week over week, the retail average rose in 49 states and Washington, D.C. In 36 states, the average rose by 5 CPG or more, while another eight states had a 10-CPG or greater increase. States in the Northeast had the largest increases on a CPG basis, with New Jersey (up 14 CPG), Connecticut (up 13 CPG) and Massachusetts (up 12 CPG) leading by size of the increase.
Hawaii, which is typically one of the most expensive gasoline markets in the country, was the only state to see prices fall—or down 3 CPG week-over-week.
On a monthly basis, prices rose in 37 states and Washington, D.C. Gasoline prices increased 5 CPG of more in 23 states and D.C., while seven states had a 10-CPG or greater increase. Utah and Kentucky led the ranking with a 17-CPG monthly increase, followed by New Jersey (up 13 CPG) and Delaware (up 12 CPG).
The lowest monthly retail gasoline averages were in South Carolina ($2.21), Mississippi ($2.23) and Alabama ($2.24). The biggest monthly declines were in California (down 13 CPG), Oregon (down 9 CPG) and Hawaii (down 8 CPG).
From a year-over-year perspective, the retail gasoline average was sharply lower across the United States, AAA reported. Most states and D.C. had averages $1 or more lower than in 2014. Fifteen states and D.C. had price savings year-over-year at $1.25 or greater, with Indiana ($1.36), Michigan ($1.33) and Kentucky ($1.32) enjoying the biggest discounts.
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