The national average for a gallon of gasoline kept up its glacial descent, falling four cents since last week to $3.60. The primary reasons are weak domestic demand and oil costs below $80 a barrel.
“Barring some unforeseen event, this pokey drop in pump prices is not likely to change anytime soon,” said Andrew Gross, AAA spokesperson. “There are seven states with county gas averages at less than $3 a gallon. This trend will likely accelerate as more gas outlets east of the Rockies drop their prices.”
According to new data from the Energy Information Administration (EIA), gas demand rose modestly from 8.79 million b/d to 8.87 last week. Meanwhile, total domestic gasoline stocks decreased slightly from 228 to 227.8 million bbl. Lackluster pre-Memorial Day demand and steady or falling oil prices could lower pump prices.
Today’s national average is $3.60, four cents less than a month ago but seven cents more than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest weekly changes in their averages: Colorado (+14 cents), Indiana (-11 cents), New Mexico (+11 cents), Nevada (-8 cents), Utah (-8 cents), Tennessee (-8 cents), California (-7 cents), Ohio (-7 cents), Delaware (-6 cents) and Maryland (-6 cents).
The nation’s top 10 most expensive markets are California ($5.24), Hawaii ($4.80), Washington ($4.62), Nevada ($4.40), Oregon ($4.40), Alaska ($4.34), Arizona ($3.92), Illinois ($3.89), Idaho ($3.83), and Pennslyvania ($3.75).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by 61 cents to settle at $78.87 a barrel. Prices rose as the EIA reported that crude oil inventories had decreased by 2.5 million barrels from the previous week. At 457.0 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
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