Gasoline prices took another trip south this week, falling eight cents since Thursday, May 30, to $3.48. It marks the largest weekly drop of the year.
“This drop in pump prices appears to have some sticking power for now,” said Andrew Gross, AAA spokesperson. “More states should see their averages dip below $3 a gallon in the coming weeks.”
According to new data from the Energy Information Administration (EIA), gas demand dipped from 9.14 b/d to 8.94 last week. Meanwhile, total domestic gasoline stocks jumped from 228.8 to 230.9 million bbl. Tepid gasoline demand, increasing supply, and falling oil costs will likely lead to falling pump prices.
Thursday’s national average is $3.48, 17 cents less than a month ago and six cents less than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest changes in their averages: Indiana (-17 cents), Alaska (-16 cents), Illinois (-13 cents), Florida (-13 cents), Michigan (-13 cents), Ohio (-13), Kentucky (-13), Nevada (-11), California (-11 cents), and Wisconsin (-10 cents).
The nation’s top 10 least expensive markets are Mississippi ($2.98), Arkansas ($3.00), Oklahoma ($3.00), Texas ($3.02), Kansas ($3.06), Louisiana ($3.06), Tennessee ($3.07), Missouri ($3.11), South Carolina ($3.13), and Alabama ($3.15).
Oil Market Dynamics
At the close of Wednesday, June 5’s formal trading session, WTI rose by 82 cents to settle at $74.07 a barrel. Last Thursday, the price was $77.91. The EIA reports that crude oil inventories increased by 1.2 million barrels from the previous week. At 455.9 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
