Gasoline demand may be entering the winter lull sooner than expected. The Energy Information Administration reports that demand hit 9.1 million b/d last week. The estimate is approximately 160,000 b/d less than the previous week, 400,000 b/d less than the rate at this time in 2017 and in line with rates seen in February 2018. The drop in demand has helped to push prices lower, following an unusual spike in pump prices seen last month due to increased crude prices. Crude prices are higher this year over last year due to global supply concerns, including the impact of U.S.-imposed sanctions on Iran’s crude exports. Today’s national average for unleaded regular gasoline is $2.74, which is 17 cents less than last month. If demand continues to trend at this rate or drops even lower, American motorists will likely see gas prices continue to fall.
Gas Demand Lowers Further