The national average for a gallon of gasoline has fallen by a nickel since Thursday, May 23 to $3.56, the largest one-week drop thus far for 2024. The primary reasons are tepid demand and a lower oil price.
“Gas prices will likely keep up this slow sag now that we are past the Memorial Day travel weekend and more locations, east of the Rockies, will be selling gas below $3 a gallon,” said Andrew Gross, AAA spokesperson. “But it’s time to start weather watching as the Atlantic Hurricane Season begins June 1, and forecasters predict it will be very active. A storm impacting the Gulf Coast oil production and refining centers could push prices temporarily higher, so stay tuned.”
According to new data from the Energy Information Administration (EIA), gas demand fell slightly from 9.31 b/d to 9.14 last week. Meanwhile, total domestic gasoline stocks rose from 226.8 to 228.8 million bbl. Lower gasoline demand, increasing supply, and falling oil costs could lead to pump price decreases.
Thursday’s national average is $3.56, nine cents less than a month ago and a penny less than a year ago.
Quick Stats
The nation’s top 10 least expensive markets are Mississippi ($3.03), Arkansas ($3.06), Oklahoma ($3.07), Kansas ($3.10), Texas ($3.13), Louisiana ($3.13), Tennessee ($3.13), Missouri ($3.16), South Carolina ($3.18) and Alabama ($3.20).
The nation’s top 10 most expensive markets are California ($5.09), Hawaii ($4.78), Washington ($4.53), Oregon ($4.28), Nevada ($4.27), Alaska ($4.24), Illinois ($3.99), Arizona ($3.81), Pennsylvania ($3.75) and Idaho ($3.73).
Oil Market Dynamics
At the close of Wednesday, May 29’s formal trading session, WTI declined by 60 cents to settle at $79.23 a barrel. Prices fell despite the EIA reporting that crude oil inventories decreased by 4.2 million barrels from the previous week. At 454.7 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.