Since Monday, the national average for a gallon of regular gasoline has increased by two cents to $3.07. In its latest weekly report, new data from the Energy Information Administration (EIA) showed that gas demand dropped from 9.15 million b/d to 8.48 million b/d, while total domestic gas stocks increased by 7 million bbl to 241 million bbl. Typically, lower gas demand amid growing stocks would help push pump prices down, but the increasing price of crude has pushed prices up instead.
At the close of Thursday’s formal trading session, WTI increased by 33 cents to settle at $70.29. Crude prices crossed the $70/bbl threshold on Tuesday, a point they had not seen since mid-October 2018. Crude prices have increased due to optimism that vaccine rollout will continue to help crude demand recover and after the U.S. Consumer Price Index showed that prices increased by 5% in May, compared to last year, a larger increase than expected. The new report is fanning market concerns that inflation is driving prices higher. Additionally, crude prices have been bolstered by EIA’s latest report revealing that total domestic crude supplies decreased by 5.2 million bbl to 474 million bbl last week.
If domestic crude prices remain high, American drivers will likely continue to see pump prices fluctuate through the end of the month.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: Ohio (+21 cents), Colorado (+19 cents), Tennessee (+17 cents), Virginia (+16 cents), Hawaii (+15 cents), North Carolina (+15 cents), Illinois (+15 cents), Wyoming (+15 cents), Washington, D.C. (+15 cents) and Texas (+15 cents).