Since Monday, the national average for a gallon of regular gasoline has decreased by four cents to $4.28. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks fell by 3.6 million bbl to 241 million bbl last week. Gasoline demand also decreased slightly from 8.96 million b/d to 8.94 million b/d. The drop in gas demand is contributing to price decreases, but the recent reversal in oil prices is creating greater downward pressure on pump prices. If the oil price continues to decline, pump prices will likely follow suit.
At the close of Wednesday’s formal trading session, WTI decreased by $1.40 to settle at $95.04. After crude prices spiked in response to Russia’s invasion of Ukraine, crude prices changed course in reaction to China announcing new lockdowns alongside rising COVID-19 infection rates. The price of oil has moved lower due to market concerns that crude oil demand will decline, as it did in 2020 when countries sought to curb COVID-19 transmission rates. Additionally, EIA reported that total domestic crude stocks increased by 4.3 million bbl last week to 415.9 million bbl. The recent growth in total domestic crude inventories also contributes to the current reduction in crude prices.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Delaware (−16 cents), New Jersey (−11 cents), Washington, D.C. (−11 cents), Maryland (−10 cents), Maine (−9 cents), Virginia (−8 cents), Connecticut (−8 cents), Vermont (−8 cents), Pennsylvania (−7 cents) and Wisconsin (−6 cents).