Since Monday, the national average for a gallon of regular gasoline has decreased by one cent to $2.11, which is three cents less than a week ago, seven cents less than a month ago, and still significantly cheaper than last year (-50 cents). In the new weekly report from the Energy Information Administration (EIA), gas demand decreased from 8.55 million b/d to 8.34 million b/d. Low demand, as total domestic stocks increased by 1.5 million bbl to 227.7 million bbl last week, has helped pump prices decrease. With demand remaining low, American drivers should expect pump prices to continue to decline.
At the close of Thursday’s formal trading session, WTI decreased by 36 cents to settle at $38.79. Domestic crude prices fell due to market concern about increasing coronavirus infections worldwide, which could lower crude demand as countries impose new restrictions that will likely limit oil consumption. The drop in crude prices occurred despite EIA’s new weekly report showing that total domestic crude inventories dropped by 8 million bbl to 484.4 million bbl last week. As demand concerns continue to weigh on the market, crude prices will likely continue to decline.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Kentucky (-7 cents), Washington, D.C. (-6 cents), Delaware (-6 cents), Michigan (-6 cents), Ohio (-5 cents), Texas (-5 cents), South Carolina (-5 cents), Florida (-4 cents), West Virginia (-4 cents) and Georgia (-4 cents).