Since Monday, the national average for a gallon of regular gasoline dropped six cents to $3.99. The national average has not been below $4 per gallon since March 5. In the spring, oil prices spiked in reaction to Russia’s invasion of Ukraine, leading the national average to a new all-time high.
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.54 million b/d to 9.12 million b/d last week. However, the rate is 307,000 b/d lower than last year. Moreover, according to EIA, total domestic gasoline stocks decreased by 5 million bbl to 220.3 million bbl. Although gasoline demand has increased and supply has tightened, lower oil prices have helped lower pump prices. If oil prices continue to decline, drivers will likely continue to see pump prices decrease.
At the close of Wednesday’s formal trading session, WTI increased by $1.43 to settle at $91.93. Crude prices rose yesterday after the U.S. Bureau of Labor Statistics reported a smaller than expected increase in inflation last month at 8.5 percent. The rise in market optimism helped to boost prices despite EIA reporting that total domestic crude supply increased by 5.4 million bbl last week.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Colorado (−21 cents), Arizona (−21 cents), Illinois (−19 cents), Maine (−19 cents), Ohio (−18 cents), Kansas (−18 cents), West Virginia (−18 cents), Wyoming (−17 cents), Arkansas (−17 cents) and Indiana (−17 cents).