Gas Prices Surge Due to Arctic Blast

DENVER (Feb. 22, 2021) - Colorado gas prices shot up seven cents on the week as arctic weather wreaked havoc on the Gulf Coast refinery region, knocking gasoline refineries offline in Texas and neighboring states and interfering with fuel shipments out of the area. Nationwide, on the week, 66 percent of state averages spiked by double digits, driving the national average up by 13 cents to $2.63, the most expensive price since October 2019. 

"When you get right down to it, last week was the equivalent of a hurricane event," said Skyler McKinley, regional director of public affairs for AAA. "With close to 40 percent of U.S. crude production offline because refineries are closed, there is going to be pain at the pump until operations resume. Luckily, most of the nearly two dozen impacted refiners should be able to restart operations this week, if they haven't already."

Last week, refinery outages were reported in Texas, Louisiana, Oklahoma, Arkansas, Tennessee, and Kansas. 

Stocks Still at Healthy Levels
The Energy Information Administration (EIA) reports gasoline stocks sit at 257 million barrels, just 2 million barrels short of a year ago. Stock levels, then, are relatively healthy - allowing for ample supply to flow to impacted areas. EIA's latest demand measurement of 8.4 million barrels per day is the highest reported since early November of last year, although demand should dip in this week's report as last week's winter storm took motorists off the road across the country.

Gas prices will be volatile until crude production returns to normal levels. Motorists should expect more expensive prices to stick around, as demand rises amid the continued COVID-19 vaccine rollout. Large spikes, however, should subside until the summer months. 

Oil Market Dynamics
At the close of Friday's formal trading session, West Texas Intermediate (WTI) decreased by $1.28 to settle at $59.24. Crude prices took a step back last week amid market concern that crude demand may not rebound as expected, but prices did push higher earlier in the week due to supply and delivery impacts from the winter storm. Crude prices were also bolstered by EIA's latest weekly report revealing that total domestic crude inventories dropped by 7.3 million barrels, bringing the supply level to 461.8 million barrels. This week, crude prices will likely rise if EIA's Wednesday report shows another decrease in total stocks, but gains could be limited if demand concerns persist. 

Colorado Gas by the Numbers

Fort Collins-Loveland
Current Average: $2.44
Yesterday Average: $2.44
Week Ago Average: $2.38
Month Ago Average: $2.28
Year Ago Average: $2.47

Denver
Current Average: $2.47
Yesterday Average: $2.47
Week Ago Average: $2.41
Month Ago Average: $2.28
Year Ago Average: $2.34

Greeley
Current Average: $2.48
Yesterday Average: $2.47
Week Ago Average: $2.38
Month Ago Average: $2.27
Year Ago Average: $2.34

Colorado Springs
Current Average: $2.49
Yesterday Average: $2.49 
Week Ago Average: $2.46
Month Ago Average: $2.32
Year Ago Average: $2.32

Grand Junction 
Current Average: $2.50
Yesterday Average: $2.50
Week Ago Average: $2.41
Month Ago Average: $2.31
Year Ago Average: $2.33

Boulder-Longmont
Current Average: $2.51
Yesterday Average: $2.51
Week Ago Average: $2.42
Month Ago Average: $2.27
Year Ago Average: $2.36

Pueblo
Current Average: $2.54
Yesterday Average: $2.54
Week Ago Average: $2.51
Month Ago Average: $2.42
Year Ago Average: $2.41

Durango
Current Average: $2.59
Yesterday Average: $2.57 
Week Ago Average: $2.42
Month Ago Average: $2.40
Year Ago Average: $2.41

Glenwood Springs
Current Average: $2.70
Yesterday Average: $2.76
Week Ago Average: $2.68
Month Ago Average: $2.51
Year Ago Average: $2.66

Vail
Current Average: $2.90
Yesterday Average: $2.90
Week Ago Average: $2.80
Month Ago Average: $2.66
Year Ago Average: $2.84

About AAA – The Auto Club Group

AAA Colorado is a proud part of The Auto Club Group (ACG), the second-largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn. Learn more.