WASHINGTON, D.C. —At $3.04, the national gas price average only increased one penny leading up to Memorial Day weekend. The majority of states saw no change to pump prices or a decline on the week. However, prices may not stay stagnant. For the week ending May 21, demand jumped to 9.4 million b/d – the highest reported number since early March 2020 and up nearly 100,000 b/d over the same week last year, indicating motorists.
“Demand has steadily jumped week-over-week since the end of April, pushing supply down to typical summer levels. The increasing demand and decreasing supply combined with more expensive crude oil prices means gas prices are likely to see fluctuation throughout June,” said Jeanette McGee, AAA spokesperson. “We could see some decreases early in the month and increases mid-month as school years end and summer travel increases.”
Today’s average is $1.05 more than last year at this time and 15 cents more expensive than last month. The May national gas price averaged $3/gallon. That is just 11 cents more than May 2018 and 2019 national average. With a $3+/gallon average at the start of June, this month could prove to be the most expensive average in years.
- The nation’s top 10 largest weekly changes: Michigan (+9 cents), Indiana (+6 cents), Ohio (+6 cents), Illinois (+5 cents), Kentucky (+4 cents), California (+4 cents), Oklahoma (−4 cents), South Carolina (−3 cents), Texas (−3 cents) and Nebraska (−3 cents).
- The nation’s top 10 least expensive markets: Louisiana ($2.70), Mississippi ($2.70), Texas ($2.70), Oklahoma ($2.71), Missouri ($2.71), Arkansas ($2.75), Kansas ($2.81), Alabama ($2.81), South Carolina ($2.82) and Minnesota ($2.83).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 53 cents to settle at $66.32. Although prices ended the day down due to market liquidation at the end of the month, crude prices gained on the week after EIA’s weekly report showed that total domestic crude inventories decreased by 1.7 million bbl to 484.3 million bbl. However, last week’s price gains were limited by market concerns that increasing coronavirus infections around the world could reduce crude consumption this year. For this week, crude prices could climb further if EIA’s next report shows another decline in crude stocks.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.