Rising Crude Drives Up Gas Prices

DENVER (Feb. 2, 2020)  - The honeymoon's over: While the national gas price average has been cheaper year-over-year for the past 337 days, all good things must come to an end – perhaps as early as this week. At $2.42, the national average is only a nickel cheaper than a year ago. 

Consider it yet another reason we're lucky to live in Colorado, where, at $2.33 a gallon, prices remain down around 20 cents from this time in 2020. 

"One silver lining of the past year, however small, is that we've all benefited from cheaper gas prices," said Skyler McKinley, regional director of public affairs for AAA. "We'll still enjoy some savings in Colorado for some time yet, but rising crude oil prices are going to increase what you pay at the pump, plain and simple."

Trendlines
While cheaper year-over-year, the national average increased by two cents on the week and is now 17 cents more expensive than last month. The national average continued to climb this past week despite a drop in gasoline demand and refinery utilization. According to the latest Energy Information Administration (EIA) measurements, demand declined from 8.11 million barrels a day to 7.83 million barrels a day, and total refinery utilization decreased from 82.5 percent to 81.7 percent over last week. These decreases led to an overall increase in gasoline supply of 2.4 million barrels. 

Typically, these factors (decrease in demand, increase in supply) drive a decrease at the pump, but sustained crude oil prices are pushing an increase. For three weeks, crude continues to price between $52–$53/barrel, steady price points not seen since mid-February 2020. 

Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 14 cents to settle at $52.20. Price gains were limited last week by ongoing market concern that crude demand may take more time than expected to recover in 2021 due to new coronavirus infections and associated travel restrictions. However, EIA’s new weekly report prompted crude price increases earlier in the week after it showed total domestic crude inventories declined by 9.9 million barrels to 476.7 million barrels, which is the largest weekly decline since late July 2020. 

"The continued tightening of international production, combined with a renewed American focus on alternative fuels – and a gradual increase in demand amid the roll-out of COVID-19 vaccines – are sure to push prices upward," McKinley said. "It isn't a question of if we return to pre-2020 prices; it's when." 

Colorado Gas By the Numbers

Fort Collins-Loveland

• Current Average: $2.26
• Yesterday Average: $2.26
• Week Ago Average: $2.27
• Month Ago Average: $2.26
• Year Ago Average: $2.56

Greeley

• Current Average: $2.27
• Yesterday Average: $2.27
• Week Ago Average: $2.27
• Month Ago Average: $2.21
• Year Ago Average: $2.49

Denver

• Current Average: $2.27
• Yesterday Average: $2.28
• Week Ago Average: $2.27
• Month Ago Average: $2.20
• Year Ago Average: $2.46

Boulder-Longmont

• Current Average: $2.28
• Yesterday Average: $2.28
• Week Ago Average: $2.27
• Month Ago Average: $2.17
• Year Ago Average: $2.51

Colorado Springs

• Current Average: $2.30
• Yesterday Average: $2.31
• Week Ago Average: $2.31
• Month Ago Average: $2.24
• Year Ago Average: $2.48

Grand Junction

• Current Average: $2.32
• Yesterday Average: $2.31
• Week Ago Average: $2.30
• Month Ago Average: $2.22
• Year Ago Average: $2.53

Durango

• Current Average: $2.39
• Yesterday Average: $2.37
• Week Ago Average: $2.38
• Month Ago Average: $2.12
• Year Ago Average: $2.57

Pueblo

• Current Average: $2.43
• Yesterday Average: $2.43
• Week Ago Average: $2.42
• Month Ago Average: $2.32
• Year Ago Average: $2.42

Glenwood Springs

• Current Average: $2.59
• Yesterday Average: $2.60
• Week Ago Average: $2.49
• Month Ago Average: $2.52
• Year Ago Average: $2.81

Vail

• Current Average: $2.65
• Yesterday Average: $2.65
• Week Ago Average: $2.65
• Month Ago Average: $2.68
• Year Ago Average: $2.91