Since Monday, the national average for a gallon of regular gasoline has increased by 10 cents to $4.58. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 4.8 million bbl to 220.2 million bbl last week. On the other hand, gasoline demand increased from 8.7 million b/d to 9 million b/d. Tighter supply and increased demand have pushed pump prices higher. This supply/demand dynamic, combined with volatile crude prices, will likely continue to keep upward pressure on pump prices.
At the close of Wednesday’s formal trading session, WTI decreased by $2.81 to settle at $109.59. Crude prices dropped yesterday as market concerns about the likelihood of a recession increased. If a recession occurs, crude demand would likely decrease amid decreased economic activity and cause crude prices to decline. Additionally, crude prices decreased despite EIA reporting that domestic crude supply decreased by 3.4 million bbl to 420.8 million bbl. The current level is approximately 13.4 percent lower than during the second week of May 2021.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Alaska (+34 cents), Connecticut (+30 cents), Rhode Island (+28 cents), Washington (+28 cents), Massachusetts (+28 cents), New Hampshire (+28 cents), New Jersey (+27 cents), Maine (+26 cents), Oregon (+26 cents) and New York (+25 cents).