Since Monday, the national average for a gallon of regular gasoline has declined eight cents to $4.13. According to new data from the Energy Information Administration (EIA), gas demand dropped from 9.25 million b/d to 8.54 million b/d last week. The rate is 1.24 million b/d lower than last year and is in line with demand at the end of July 2020, when COVID-19 restrictions were in place and fewer drivers hit the road. Moreover, according to EIA, total domestic gasoline stocks increased slightly by 200,000 bbl to 225.3 million bbl. If gas demand remains low and stocks continue to rise alongside falling crude prices, drivers will likely continue to see pump prices decrease.
At the close of Wednesday’s formal trading session, WTI decreased by $3.76 to settle at $90.66. Crude prices have fallen this week as market concerns about weakening demand persist after the EIA reported that total domestic crude inventory increased by 4.5 million bbl to 426.6 million bbl last week. The sharp inventory increase during the usually high-demand summer driving season signals low demand could continue pushing prices lower. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group also known as OPEC+, announced yesterday that it would boost collective crude production by 100,000 bbl next month. However, the slight increase is unlikely to have a significant pricing impact – especially if demand continues to decline.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Colorado (−22 cents), Ohio (−21 cents), Indiana (−21 cents), Illinois (−21 cents), Michigan (−20 cents), Arizona (−19 cents), Iowa (−19 cents), Kansas (−18 cents), North Dakota (−18 cents) and Montana (−17 cents).