The Energy Information Administration’s latest demand reading for gasoline dropped to 9.1 million b/d, a level typically seen in the fall or winter. The drop is approximately 800,000 b/d lower than the previous week and 400,000 b/d lower than this time last year. In fact, a reading this low hasn’t been seen for early May since 2015. Part of the decline in demand is likely due to recent inclement weather in the Rockies and Midwest that may have kept American motorists off the roads more than usual during the spring. Since last Wednesday, the national average for unleaded regular gasoline has fallen two cents to $2.86. However, with summer on the horizon, pump prices will likely rebound during the run-up to Memorial Day.
Dramatic Drop in Gas Demand Pushes Pump Prices Down