Since Monday, the national average for a gallon of regular gasoline has decreased by two cents to $4.22. According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by 800,000 bbl to 238.8 million bbl last week. Gasoline demand decreased from 8.63 million b/d to 8.5 million b/d. The drop in gas demand, alongside growth in total stocks, contributes to price decreases. If demand continues to decline as gasoline stocks continue to build, the national average will likely continue to move lower.
At the close of Wednesday’s formal trading session, WTI increased by $3.58 to settle at $107.82. Crude prices climbed after EIA’s weekly report revealed that total domestic crude stocks declined last week by 3.5 million bbl to 409.9 million bbl, approximately 18 percent lower than the level at the end of March 2021. However, crude prices will likely reverse course today amid news that the U.S. will release 1 million barrels of oil per day from the Strategic Petroleum Reserve. While the pump price impact will be determined by the exact amount of oil purchased in the market and the duration of the daily releases, some reports have noted that releases could last for up to 180 days. If the releases occurred for that long, the market would likely see downward pressure on oil prices. However, the global oil market remains highly volatile, so additional news that threatens supply could put upward pressure on oil prices.
Largest Weekly Changes
- Since last Thursday, these 10 states have seen the largest changes in their averages: Hawaii (+11 cents), Delaware (+8 cents), Florida (+8 cents), Georgia (−8 cents), Nevada (+6 cents), North Carolina (−6 cents), Washington, D.C. (+5 cents), Wyoming (+5 cents), Rhode Island (−5 cents) and Michigan (−5 cents).