Gas prices posted a quiet week, with the national average drifting lower by three cents to $3.64 since Thursday, May 2. Tepid pre-Memorial Day domestic demand and oil costs below $80 a barrel are the likely culprits.
“The current news cycle is jampacked, so not having gas prices in the mix should be a welcome relief,” said Andrew Gross, AAA spokesperson. “Most consumers will probably see pump prices barely budging for now. That’s important because, on May 13, AAA will release the Memorial Day travel forecast, which could be a robust weekend for car trips. Stay tuned!”
According to new data from the Energy Information Administration (EIA), gas demand rose modestly from 8.62 million b/d to 8.79 last week. Meanwhile, total domestic gasoline stocks increased by nearly 1 million bbl to 228 million bbl. Slack demand, rising supply, and falling oil prices could push pump prices lower.
Thursday’s national average is $3.64, four cents more than a month ago and 12 cents more than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest weekly changes in their averages: Indiana (+13 cents), Florida (-12 cents), Ohio (+9 cents), Delaware (-8 cents), New Mexico (-7 cents), Maryland (-7 cents), Utah (-7 cents), Tennessee (-6 cents), Nevada (-6 cents) and Texas (-6 cents).
The nation’s top 10 most expensive markets are California ($5.31), Hawaii ($4.81), Washington ($4.65), Nevada ($4.49), Oregon ($4.44), Alaska ($4.39), Arizona ($3.99), Illinois ($3.93), Idaho ($3.86), and Utah ($3.83).
Oil Market Dynamics
At the close of Wednesday, May 8’s formal trading session, WTI increased by 61 cents to settle at $78.99 a barrel. Prices rose as the EIA reported that crude oil inventories had decreased by 1.4 million barrels from the previous week. At 459.5 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.