Tighter Supply, Increasing Demand Leads to Overnight Jump at the Pump

(KNSI) — Tighter supply and increasing demand lead to another jump at the pump.

According to AAA, the national average for a gallon of regular unleaded is $3.81, six cents higher than a week ago but around the same as a month ago. In Minnesota, gas went up six cents overnight to $3.72. St. Cloud prices are slightly lower at $3.68.

Andrew Gross, the AAA spokesperson, says there are stark differences in gas prices depending on where you fill up. On the west coast, they’re paying over $6 a gallon. Along the Gulf Coast and in Texas, it’s under $3 a gallon.

The Energy Information Administration says gas demand increased nationally last week from 8.32 million to 8.83 million barrels per day. Total domestic gasoline stocks decreased by 2.4 million barrels to 212.2 million. If demand remains high as supply tightens, drivers should brace for rising pump prices through the weekend.

Some of the world’s top oil producers say they’re mulling cutting oil output by more than a million barrels a day in response to a global economic slowdown and tightening monetary policies. On Wednesday, there is a meeting of OPEC and non-OPEC countries, and no final decisions are expected to be made until after the meeting.

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