Since Monday, the national average for a gallon of regular gasoline has decreased by two cents to $2.14, which is two cents less than a week ago, four cents less than a month ago, and still significantly cheaper than last year (-46 cents). In the new weekly report from the Energy Information Administration (EIA), gas demand increased from 8.29 million b/d to 8.55 million b/d. However, the current estimate for demand is 1.23 million b/d lower than the rate at this time in 2019. Low demand, as total domestic stocks decreased by 900,000 bbl to 226.1 million bbl last week, has helped pump prices decrease. As demand remains low, American drivers should expect pump prices to continue to decline this fall.
At the close of Thursday’s formal trading session, WTI decreased by $1.22 to settle at $36.17. 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 was also supported by EIA’s new weekly report showing that total domestic crude inventories grew by 4.3 million bbl to 492.4 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 (-4 cents), Florida (-4 cents), Minnesota (-4 cents), North Carolina (-3 cents), Ohio (-3 cents), Oklahoma (-3 cents), South Carolina (-3 cents), Washington, D.C. (-3 cents), Tennessee (-3 cents) and Texas (-2 cents).