Charlotte, N.C. (June 7, 2021) – Pump prices in the Carolinas saw a small increase on the week as crude oil prices jumped 5% over concerns that the global fuel supplies will not keep up with recovering demand.
“Crude oil prices are on the rise, which could very well lead to a small uptick in gas prices,” said Tiffany Wright, spokesperson, AAA – The Auto Club Group in the Carolinas. “The recent drop in demand also plays a part in why we’ll see gas prices fluctuate in the coming week.”
North Carolina’s current gas price average is $2.88, seeing a 1-cent increase on the week. This is 17 cents more expensive than a month ago and $1.03 more expensive than last year. South Carolina’s current gas price average is $2.80, seeing a 2-cent decrease on the week. This is 15 cents more expensive than a month ago and $1.08 more expensive than last year. South Carolina is also a part of the nation’s top 10 least expensive markets.
The national gas price average currently sits at $3.05, increasing a penny over the weekend after ten days of stability.
Prices are poised to fluctuate in the coming week due to a recent drop in demand. The EIA (Energy Information Administration) reported demand decreased from 9.48 million b/d to 9.15 million b/d for the week ending May 28. During the same week, total gasoline stocks increased to nearly 234 million bbl as U.S. refinery utilization jumped to 88.7% – the highest rate since February 2020.
To help gauge pump price fluctuation later this summer, AAA is tracking two additional factors: crude oil prices and global supply. Last week, crude prices increased to their highest price point ($69/bbl) in 2.5 years. Since crude accounts for more than 50% of the price at the pump, when it goes up, so does the price motorists pay. What is promising is that crude may not sustain at this level. The Organization of the Petroleum Exporting Countries (OPEC), and its allies including Russia, announced last week they still plan to gradually increase crude production in July. If they do increase production, this could lead to a decrease in crude oil prices, which is good news for motorists.
OPEC’s efforts to hold its production agreement in place bolstered prices last week. The move could help reduce pump prices later this summer, but the amount of the price reduction will depend on how well OPEC and its allies adhere to their agreement and if the additional production is not met with higher demand. OPEC and its allies will meet again on July 1 to review their production agreement.
For updated state and metro prices log on to https://gasprices.aaa.com/
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.