Since Monday, the national average for a gallon of regular gasoline has increased by one cent to $2.12, which is one cent more than a week ago, six cents less than a month ago, and still significantly cheaper than last year (-49 cents). In the new weekly report from the Energy Information Administration (EIA), gas demand increased from 8.34 million b/d to 8.76 million b/d. The increase in demand, alongside a drop in total domestic stocks by 2.3 million bbl to 225.4 million bbl, helped the national average to increase this week. However, EIA’s current weekly demand estimate is approximately 560,000 b/d lower than last year’s rate at this time. Low demand will likely contribute to pump prices remaining low this autumn.
At the close of Thursday’s formal trading session, WTI decreased by 33 cents to settle at $41.12. Domestic crude prices decreased at the end of the day due to rising coronavirus infections worldwide, which could reduce global crude demand as countries impose new restrictions meant to stop the spread of the virus. Earlier in the day and week, domestic crude prices increased after Organization of the Petroleum Exporting Countries (OPEC) revised its outlook for world oil demand through the end of the year downward by about 300,000 b/d to 96.3 million b/d. The revision raised market expectations that the cartel and its allies, including Russia, will either agree to continue or increase current supply cuts when they meet on November 30 and December 1. Currently, OPEC and its partners in the production reduction agreement have agreed to cut crude output by 7.7 million b/d through the end of 2020.
Largest Weekly Increases
- Since last Thursday, these 10 states have seen the largest increases in their averages: South Carolina (+6 cents), Wisconsin (+5 cents), New Mexico (+5 cents), Washington, D.C. (+4 cents), Michigan (+3 cents), Minnesota (+3 cents), Pennsylvania (+3 cents), West Virginia (+3 cents), Indiana (+2 cents) and Ohio (+2 cents).