Another week, another slide in gas prices as the national average for a gallon of gasoline dipped two cents since last Thursday to $3.46. The main reasons for the decline are lackluster gasoline demand and burgeoning supply.
“Gasoline demand has trailed 2023 for most of this year, and analysts believe economic uncertainty may suppress demand this summer,” said Andrew Gross, AAA spokesperson. “So, is the typical robust summer driving season a thing of the past? Or is gas demand just taking longer to pick up steam? We may not know until autumn.”
According to new data from the Energy Information Administration (EIA), gas demand crept higher from 8.94 million b/d to 9.04 last week. Meanwhile, total domestic gasoline stocks jumped from 230.9 to 233.5 million barrels as production increased last week, averaging 10.1 million barrels per day. Mediocre gasoline demand, increasing supply, and stable oil costs will likely lead to falling pump prices.
Today’s national average is $3.46, 15 cents less than a month ago and 13 cents less than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest changes in their averages: Ohio (+17 cents), California (-10 cents), Nevada (-10 cents), Alaska (-10 cents), Michigan (+9 cents), Illinois (-9), Indiana (+9), Florida (-8), Washington (-7 cents), and Utah (-7 cents).
The nation’s top 10 least expensive markets are Mississippi ($2.93), Arkansas ($2.95), Oklahoma ($3.01), Louisiana ($3.01), Texas ($3.02), Kansas ($3.02), Tennessee ($3.03), Missouri ($3.05), Alabama ($3.08), and South Carolina ($3.11).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose by 60 cents to settle at $78.50 a barrel. The EIA reports that crude oil inventories increased by 3.7 million barrels from the previous week. At 459.7 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
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