Since Monday, the national average for a gallon of regular gasoline has fallen by four cents to $3.10. According to new data from the Energy Information Administration (EIA), gas demand increased from 8.26 to 8.71 million b/d last week. However, the current rate is nearly 300,000 b/d lower than at the end of December 2021. Meanwhile, total domestic gasoline stocks grew by 2.5 million bbl to 223.6 million bbl. Increasing supply and low gasoline demand are pushing pump prices lower. As demand remains low and stocks rise, drivers will likely continue to see pump prices decrease through next year.
At the close of Wednesday’s formal trading session, WTI increased by $2.06 to settle at $78.29. Crude prices have increased this week after the EIA reported that total domestic commercial crude stocks decreased substantially by 5.9 million bbl to 418.2 million bbl last week. The drawdown signals that oil demand may continue to rise despite ongoing market concerns that a recession or slowdown could occur next year. If economic growth falters, crude demand will likely drop alongside prices.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Arizona (−18 cents), Idaho (−18 cents), Indiana (−17 cents), Nevada (−16 cents), Ohio (−15 cents), Illinois (−15 cents), Michigan (−15 cents), Delaware (−14 cents), Utah (−14 cents) and Wyoming (−14 cents).