Gas prices saw another round of increases last week. Georgia gas prices averaged $2.18 on Sunday. The state average is fractions of a cent higher than last week, and 19 cents more than this time last year.

People using the free AAA mobile app are finding gas prices between $1.95 and $2.45. Only 4 percent of gas stations in Georgia have gasoline priced under $2 a gallon; 78 percent of gas stations have gasoline below $2.25/g.

"Gas prices leveled out over the weekend, but should climb again this week," said Mark Jenkins, spokesman, AAA The Auto Club Group. "Strong demand and another round of supply draws pushed the price of crude to its highest point in 9 weeks, and that trend is expected to continue this week. Gas prices should rise 5-10 cents this week, but remain below this year's highs, set earlier this year."

The most expensive gas price averages in Georgia are in Atlanta ($2.24), Savannah ($2.18), and Athens ($2.13)

The least expensive gas price averages in Georgia are in Augusta ($2.05), Albany ($2.10), and Macon ($2.10)

The national average price for regular unleaded was $2.31 on Sunday. After climbing 3 cents in the past week, the national average is now 16 cents more than this time last year. So far this year, gas prices have averaged $2.32. The price for regular unleaded is under $2 a gallon at only 10 percent of gas stations across the country. Prices are above $2.25 at 53 percent of U.S. gas stations.

Crude Oil Reaches 9-Week High

The price per barrel of crude pushed higher this week, following news from OPEC that its members pledged to reduce exports and the EIA weekly report showing a decline in crude inventories. At OPEC’s meeting on Monday to discuss the status of its production reduction agreement, Saudi Arabia stated its plans to limit crude exports to 6.6 million barrels per day in August, about 1 million b/d below the level last year. Kuwait and the United Arab Emirates also agreed to cut exports amid rising fears in the market that growth in production and exports from member countries may be undercutting the cartel’s efforts to restrict supplies and raise prices in the global market. Additionally, EIA reported a 7.2 million barrel drop in U.S. crude inventories for the week ending on July 21 – a much higher number than expected. All of the news has given investors greater confidence in crude inventories continuing to shrink, leading the price per barrel of crude to move toward highs not seen since the end of May. Higher crude prices will contribute to rising gas prices, so if crude prices continue to push upward, drivers are likely to see it reflected at the pump.

Highs and Lows of 2017*

The highest national average price for gasoline, so far this year was $2.42 on April 21; the lowest was $2.23 on July 5.

The highest average price in Georgia, so far this year, was $2.29 on April 14; the lowest was $2.08 on July 5.

FUEL FUNDAMENTALS
(Based on weekly data provided by the EIA)

U.S. Crude Oil   

Oil prices reached 9-week highs, settling at $49.71/b - nearly $4 more than the week before

Supplies decreased for the fourth consecutive week, falling by 7.2 million barrels to a total of 483.4 million

Production declined for the first time in a month. At 9.4 million bpd, U.S. oil production remains near record levels (9.6 million - June 2015).

Refineries remain strong, pumping out more product than the week before.

U.S. Gasoline

Wholesale prices climbed about 12 cents on the futures market

Supplies remain strong, yet declined for the 6th consecutive week

Production remains strong, rising 2.9% over the week before

Demand for the week of July 21 was the strongest since Memorial Day, which was an all-time high