Banking & Finance

Northeast Ohio Gas Prices Rise 4 Cents

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PITTSBURGH – Gasoline prices in northeastern Ohio this week are up nearly four cents from a week ago, the East Central office of AAA reports.

This week’s average price per gallon is $2.487, up from $2.450 last week but down from the $3.714 price per gallon the week of May 13. Among Mahoning Valley communities, the average price per gallon is $2.450 in Youngstown, $2.510 in Niles, $2.453 in Ravenna and $2.360 in Ravenna.

Nationwide, the national average price of gas, which has increased for 26 days, is $2.66 per year, the highest average so far this year.

AAA attributes the pricing to relatively low crude costs, which continue to translate to significant savings at the pump for consumers. Today’s national average is about a dollar less than a year ago and is at the cheapest level for this date since 2009. The price of crude has moved higher since the middle of March due to slowing U.S. production, a weakening U.S. dollar and speculation of demand growth from China.

Despite the price increase, many market watchers believe that the recent rally may be nearing an end due to oversupply continuing to characterize the global market, effectively putting a ceiling on how high the price can go. The Organization of Petroleum Exporting Countries, or OPEC, appears to be maintaining its strategy of high production levels and is scheduled to convene in June to reassess supply quotas, but in the meantime all eyes remain on U.S. production levels based on its new position as swing producer.

AAA also predicts that automotive travel this Memorial Day holiday will reach 33 million travelers, up 5.3% compared to last year’s holiday weekend, which would be the highest volume in ten years. Gas prices may not change all that much by the holiday weekend, which would result in the cheapest Memorial Day gas prices in at least five years.

Source: AAA

Published by The Business Journal, Youngstown, Ohio.