DEARBORN, MI (WKZO AM/FM) — Drivers in Michigan are seeing little relief at the gas pump as the price for a gallon of regular unleaded remains at an average of $3.31 across the state. The price is down just two cents from a week ago and remains over $1.30 higher than this time last year.
AAA says despite a recent decrease in demand, high crude oil prices continue to keep prices at the pump elevated with no signs of relief in sight. Typically, lower demand alongside a decline in stocks would result in downward market pressure on pump prices. But high crude prices (above $80 per barrel) remain the main culprit for rising pump prices.
At the close of Thursday’s formal trading session, WTI increased by 87 cents to settle at $81.31. Crude prices maintained gains despite the EIA reporting that total domestic crude inventories increased last week. Last week’s storage level is nearly 13% lower than the level at this same time last year.
Given supply concerns, the market continues to bolster prices higher because of tight supply.
