Nat'l Pump Price Avg. Drops for 21 Straight Days, AAA SD Reports
Jan. 30, 2017 – Continual growth in the number of U.S. oil rigs and the increased drilling it implies are raising expectations for a climb in domestic oil production. Additionally, increased U.S. crude oil production coupled with lower driving demand has kept downward pressure on average prices at the pump. The nationwide average has fallen for 21 consecutive days, according to AAA.
Current Price Averages per Gallon of Regular Gasoline
- Sioux Falls – $2.22, down 11 cents since 1/16/17 … up 67 cents since 1/30/16
- Rapid City – $2.24, up 2 cents since 1/16/17 … up 27 cents since 1/30/16
- South Dakota – $2.31, down 3 cents since 1/16/17 … up 52 cents since 1/30/16
- U.S. – $2.27, down 10 cents since 1/7/17 … up 47 cents since 1/30/16
The nation’s top five most expensive markets are: Hawaii ($3.07), California ($2.80), Alaska ($2.74), Washington ($2.73) and Pennsylvania ($2.57).
The top five markets with the most dramatic monthly decreases in gas prices include: Ohio (down 33 cents), Indiana (down 31 cents), Michigan (down 18 cents), Illinois (down 18 cents) and Kentucky (down 17 cents).
Prices for drivers in the central part of the country remain flat despite the shutdown of the Magellan Pipeline last Wednesday. A leak was discovered on a section of the pipeline in Worth County, Iowa. The Oil Price Information Service reports that Magellan resumed operations on the pipeline between Rosemount, Minnesota, and Mason City, Iowa, on Saturday after “repairs to the damaged section of pipeline were safely completed.” This week Missouri ($2.10) and Oklahoma ($2.11) both appear on the top 10 list of least expensive markets.
Global Market Dynamics
Markets opened Monday morning posting steady crude oil prices as a result of increased U.S. oil production. Oil-services firm Baker Hughes reported that drillers added 15 rigs in the U.S., bringing the total crude oil rig count to 556, the highest since November 2015. The increased U.S. production continues to offset OPEC’s efforts to rebalance the global oil market. End of month surveys of OPEC production cuts are expected tomorrow and traders will be paying close attention to the cartel’s agreement compliance. Market watchers will also keep a close eye on U.S. production and the impact it has on supply and demand. At the closing of Friday’s formal trading session on the NYMEX, WTI was down 61 cents to settle at $53.17 per barrel.
AAA is North America’s largest motoring, leisure travel and safety advocacy organization with more than 56 million members. A not-for-profit, fully tax-paying organization, AAA South Dakota provides its nearly 95,700 South Dakota members with emergency roadside assistance and auto travel services. Plus, the auto club offers members and the general public a wide range of personal insurance, worldwide travel and financial services at branch offices across South Dakota and online at AAA.com.
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