Since Monday, the national average for a gallon of regular gasoline has fallen eight cents to $4.44. According to new data from the Energy Information Administration (EIA), gas demand increased from 8.06 million b/d to 8.52 million b/d last week. However, the rate is 800,000 b/d lower than last year and is in line with demand during the middle of July 2020, when COVID-19 measures curbed demand. Additionally, total domestic gasoline stocks increased by 3.5 million bbl to 228.4 million bbl, signaling that low demand led to growth in inventory last week. If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely see pump prices decline.
At the close of Wednesday’s formal trading session, WTI decreased by $1.96 to settle at $102.26. Crude prices have declined this week as the market continues to worry that weakening demand, which was expected to remain robust throughout the summer, could continue to push prices lower. Additionally, EIA reported that total domestic crude stocks decreased by 500,000 bbl to 426.6 million bbl last week, just over 13 million bbl lower than the storage level in mid-July 2021.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Iowa (−23 cents), Delaware (−23 cents), Wisconsin (−23 cents), Kansas (−22 cents), Oklahoma (−22 cents), Ohio (−21 cents), Missouri (−21 cents), Michigan (−19 cents), Tennessee (−19 cents) and Nebraska (−19 cents).