Gasoline demand, according to the Energy Information Administration (EIA), back tracked for the week ending Oct. 9, decreasing from 8.90 million b/d to 8.58 million b/d. Lower demand, even as total domestic stocks decreased by 1.6 million bbl to 225.1 million bbl and imports fell to their lowest rate since Sept. 18, has contributed to pump price decreases for the majority of the country.
“Today’s national average is $2.16, which is two cents less than a week and month ago and 49 cents cheaper than last year,” said Jeanette Casselano McGee, AAA spokesperson. “Decreases in U.S. gasoline demand, supply and imports pushed the national and 44 state gas price averages cheaper on the week.”
On the week, a few Mid-West states saw much larger decreases: Indiana (-6 cents), Michigan (-6 cents), Ohio (-5 cents) and Kentucky (-5 cents), which could be attributed to an increase in regional stock. A penny gas price increase was seen in these states since last Monday: Utah ($2.40), New Jersey ($2.24), Alaska ($2.50), Georgia ($2.00), South Dakota ($2.10) and Hawaii ($3.24).
- The nation’s top 10 largest weekly decreases: Indiana (-6 cents), Washington, D.C. (-6 cents), Michigan (-6 cents), Ohio (-5 cents), Kentucky (-5 cents), Florida (-4 cents), Wisconsin (-3 cents), West Virginia (-3 cents), South Carolina (-3 cents) and North Carolina (-3 cents).
- The nation’s top 10 least expensive markets: Mississippi ($1.84), Missouri ($1.84), Texas ($1.85), Oklahoma ($1.87), Arkansas ($1.87), Louisiana ($1.89), Alabama ($1.90), South Carolina ($1.91), Tennessee ($1.93) and Kansas ($1.94).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by eight cents to settle at $40.88. Domestic crude prices decreased at the end of last week due to market concern regarding an increase in coronavirus infections worldwide. As more social restrictions are introduced, crude demand will likely decline. The price drop occurred despite EIA’s new weekly report showing that total domestic crude inventories declined by 3.8 million bbl to 489.1 million bbl. For this week, ongoing demand concerns could cause prices to decrease further.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.