After steadily declining because of low gas demand and cheap crude prices due to COVID-19, today is the first day in 10 weeks that the national average for a gallon of regular gasoline has increased. Between yesterday and today, the national average increased by a penny to $1.77 per gallon, which is two cents less than a week ago, 24 cents less than a month ago and $1.11 less than a year ago. New data from the Energy Information Administration revealed that domestic gas demand continues to increase, which helped to push up the national average. It grew from 5.31 million b/d to 5.86 million b/d last week; however, it is still 3.37 million b/d lower than last year’s rate at this same time. As more states aim to end their stay at home orders and businesses around the country begin to reopen, gas demand is likely to continue increasing and pump prices are likely to slow their decline and possibly increase, too.
At the close of Thursday’s formal trading session, WTI increased by $3.78 to settle at $18.84. Domestic crude prices grew this week amid optimism that refiners are continuing to make necessary production cuts to reduce the crude oversupply challenges due to low crude demand caused by COVID-19. Moreover, due to rising gasoline demand, market observers believe that crude and gas demand may have already reached their lowest points for 2020 and continued price increases will follow.
Largest Weekly Changes
- Since last Thursday, these 10 states have seen the largest changes in their state averages: Wisconsin (+11 cents), Indiana (+6 cents), Ohio (+6 cents), Utah (-6 cents), Arizona (-6 cents), Vermont (-6 cents), South Dakota (-6 cents), Missouri (-5 cents), Idaho (-5 cents) and Oregon (-5 cents).