The national average for a gallon of gas fell four cents to $3.50 since last week. The likely cause is the terrible demand number for gasoline, as folks may be curtailing driving amid sizzling summer temperatures.
“The arrival of summer used to signal the start of a robust driving season, but that has not been the case recently,” said Andrew Gross, AAA spokesperson. “We know that a record number of travelers were forecast to hit the highways for the July 4th holiday, but since then, they appear to be staying off the road, and the recent scorching heat is possibly to blame. Maybe things will pick up soon.”
According to new data from the Energy Information Administration (EIA), gas demand plummeted from 9.39 million b/d to 8.78 last week. Meanwhile, total domestic gasoline stocks fell from 231.7 to 229.7 million barrels. Gasoline production took a slight ding, likely from Hurricane Beryl, dropping from an average of 10.3 million barrels daily to 9.5. Low gasoline demand and wobbly oil costs may lead to slowly lowering pump prices.
Today’s national average is $3.50, six cents more than a month ago but six cents less than a year ago.
Quick Stats
The nation’s top 10 most expensive markets are California ($4.71), Hawaii ($4.69), Washington ($4.26), Nevada ($3.99), Oregon ($3.98), Alaska ($3.85), Illinois ($3.83), Washington DC ($3.71), Pennsylvania ($3.66), and New York ($3.62).
The nation’s top 10 least expensive markets are Mississippi ($2.99), Louisiana ($3.10), Texas ($3.12), Oklahoma ($3.14), Tennessee ($3.14), Arkansas ($3.14), Kansas ($3.16), Alabama ($3.17), South Carolina ($3.22), and Missouri ($3.22).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose $2.09 to settle at $82.85 a barrel. The EIA reports that crude oil inventories decreased by 4.9 million barrels from the previous week. At 440.2 million barrels, U.S. crude oil inventories are about 5% below the five-year average for this time of year.
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