Michigan gas prices down 2 cents from last week; still up 64 cents from a month ago

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An undated file photo of a gas pump.

DETROIT (FOX 2) - Michigan gas prices decreased 2 cents from last week, according to AAA.

Regular unleaded gas is $4.14 a gallon.

"Michigan drivers saw a slight decline in gas prices despite an increase in crude oil prices," said AAA spokesperson Adrienne Woodland."If oil prices continue to rise, pump prices will likely follow suit, reversing from the current downward trend."

Gas is costing drivers 64 cents more than this time last month and $1.47 more than this time last year.

According to data from the Energy Information Administration, total domestic gasoline stocks fell by 3 million bbl to 238 million bbl. Gas demand also decreased from 8.94 million b/d to 8.63 million b/d. The drop in gas demand is contributing to price decreases. However, the steady increase in the price of oil is slowing that decline.

At the close of Wednesday’s formal trading session, WTI increased by $5.66 to settle at $114.93. Crude prices climbed after EIA’s weekly report revealed that total domestic crude stocks declined by 2.5 million bbl to 413.4 million bbl, approximately 18 percent lower than the level in mid-March 2021. The current inventory level highlights tightness in the market, contributing to rising prices, AAA said.

Additionally, earlier last week, the Caspian Pipeline Consortium said that it could reduce crude exports by as much as 1 million barrels per day due to storm damage, according to news reports. The pipeline carries oil from Russia and Kazakhstan to buyers in the global market via the Black Sea. While Russian oil is generally being shunned by the global market due to sanctions, loss of barrels from Kazakhstan could further strain already tight markets. News of the potential reduction in supply has contributed to increased crude prices last week.

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