AAA: Average R.I. gas price falls a penny | Charlestown

Last week, oil prices finished the week with sharp losses, settling in the mid-$90s in response to the announcement of a two-week ceasefire between the United States and Iran. Prices fell by nearly $20 on Wednesday alone when the ceasefire was announced, helping to ease some pressure on pump prices, which began to stabilize as cautious optimism spread through petroleum markets that an end to the war might be in sight.

Over the weekend, however, peace talks between U.S. and Iranian delegations ended with no agreement and oil prices climbed back above $100 in overnight trading after the U.S. Central Command announced a military blockade of the critical Strait of Hormuz passageway would begin on Monday. Before the war, roughly 20% of the world’s daily oil and gas supply passed through the strait, but vessel traffic has been effectively halted by Iran since the conflict started on Feb. 28.

Despite substantially higher gas prices than this time last year, domestic demand for gasoline remains strong, according to the most recent data from the Energy Information Administration (EIA). Last week, demand settled at 8.56 million barrels a day — a decrease of 122,000 barrels a day from the previous week, but still 261,000 barrels a day higher than the comparable week last year, according to the EIA. Even as demand has been trending above last year’s levels every week since the start of the war, domestic inventories are still ahead of last year and the five-year average.

Along with demand from U.S. drivers, domestic production is also under increasing pressure from foreign export demand. Over the past four weeks, the EIA reported sizable year-over-year increases in export demand for gasoline, jet fuel and diesel products by 10%, 38% and 12% respectively.

“Pump prices took a bit of a breather last week, holding steady and even falling by a penny or two in some states as petroleum markets reacted to signs of deescalation in the ongoing conflict,” said Jillian Young, director of public relations for AAA Northeast. “But as the weekend ended without a peace agreement, uncertainty was brought back to the forefront in oil and gas markets.”

The average gas price in Rhode Island is down a penny from last week ($3.99), averaging $3.98 per gallon. Today’s price is 53 cents higher than a month ago ($3.45) and $1.04 higher than this day last year ($2.94). Rhode Island’s average gas price is 14 cents lower than the national average.

AAA Northeast’s April 13 survey of fuel prices found the current national average up a penny from last week ($4.11), averaging $4.12 per gallon. Today’s national average price is 49 cents higher than a month ago ($3.63) and 94 cents higher than this day last year ($3.18).

Oklahoma and Kansas have the lowest prices in the nation at $3.44 and $3.49, respectively. California and Hawaii hold the highest prices in the nation this week at $5.89 and $5.64, respectively. Rhode Island holds the 23rd place on the list of highest gas prices in the nation.