Gas price declines for 9th consecutive week

Published 12:00 pm Wednesday, August 17, 2022

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The price at the pump continues its decline for the ninth straight week, but the drop the past seven days is less than it had been. There are some signs that the streak could come to an end this week before reaching the levels prior to the price surge in February.

According to, a crowd-sourced gas price reporting app and website, the Tuesday morning nationwide average price stood at $3.92 per gallon, down seven cents from a week ago.  In Kentucky, the average was substantially less, $3.55 a gallon, which was eight cents per gallon cheaper, when compared to the $3.63 last Tuesday.

“The streak is at great risk of being broken this week, with wholesale gasoline prices having bounced back up some 40 cents per gallon as oil prices have rebounded,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “That means the decline in average prices could wrap up soon, with some price increases possible as early as this week, especially in areas of the Great Lakes.  While the West Coast and some areas of the Rockies may see prices continue to drift lower, I do believe the national average could tick higher this week, as the better-than-expected jobs report last week likely means less demand destruction than anticipated.”

Kentucky prices usually mirror those found in the Great Lakes region.

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There are several mitigating factors to seeing possible higher gas prices in the medium term.

Heavy selling pressure hit oil markets early Monday as China reported economic data on Sunday showing concerns over demand, as credit growth slowed amidst fresh Covid-19 flare-ups. A deepening property crisis was also causing jitters of a broader economic slowdown there, pushing oil prices down.

West Texas Intermediate crude was last down $4.43 per barrel or 4.8%, to $87.66, roughly on par with last week’s open. Brent crude was down $4.64 per barrel or 4.7%, to $93.50, just above last Monday’s start. Also on the radar was Iran’s possible production deal, which could see its oil exports ramp up in case of a broader nuclear deal, also pushing oil lower.

In addition, U.S. oil inventories saw a notable jump last week, climbing 5.5 million barrels, which are now slightly above last year, while the Strategic Petroleum Reserve fell 5.3 million barrels and is now 25% lower than a year ago. Domestic oil production jumped 100,000 barrels to 12.2 million barrels, the highest since the pandemic hit in 2020.