Since Monday, the national average for a gallon of regular gasoline dropped two cents to $3.69. According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.73 million b/d to 8.49 million b/d last week. Moreover, according to the EIA, total domestic gasoline stocks declined by 1.8 million bbl to 213 million bbl. Although gasoline demand has decreased, fluctuating oil prices have led to smaller pump price decreases. If oil prices continue to rise, the national average will likely reverse as pump prices increase.
At the close of Wednesday’s formal trading session, WTI increased by $1.17 to settle at $88.48. Although crude prices increased yesterday due to a weakening dollar, prices decreased earlier in the week after the Consumer Price Index showed that inflation remains stronger than expected. This sparked market fears that the Federal Reserve could take more drastic measures that could lead to a recession, which would likely lead to a drop in crude demand and prices. EIA’s latest weekly report also showed that total commercial crude inventories increased by 2.4 million bbl to 429.6 million bbl last week.
Largest Weekly Decreases
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Connecticut (−15 cents), Rhode Island (−13 cents), Indiana (−13 cents), Massachusetts (−13 cents), Illinois (−13 cents), Delaware (−12 cents), New York (−12 cents), Ohio (−12 cents), New Jersey (−11 cents) and New Hampshire (−11 cents).