For the first time since 2021, domestic gasoline demand was over 9 million barrels daily for a third straight week. Yet despite the robust numbers, pump prices barely budged as the low cost of oil is countering a spike for now. The national average for a gallon of gas dipped a penny since last week to $3.56.
“It appears that our seasonal surge in driving may be kicking off a bit before the official start of summer,” said Andrew Gross, AAA spokesperson. “But the low cost for oil appears to mitigate any increases at the pump, which is good news for drivers.”
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 9.1 to 9.22 million b/d last week. Meanwhile, total domestic gasoline stocks rose by 2.7 million bbl to 218.8 million bbl. Although gas demand increased, increasing stocks and fluctuating oil prices have contributed to limiting increases.
Today’s national average of $3.56 is three cents more than a month ago but $1.39 less than a year ago.
Quick Stats
Since last Thursday, these 10 states have seen the largest changes in their averages: Ohio (+13 cents), Arizona (−13 cents), Indiana (+9 cents), Idaho (+8 cents), Florida (−8 cents), Delaware (−6 cents), Oregon (+5 cents), Michigan (+5 cents), Wyoming (+5 cents) and Maryland (−5 cents).
The nation’s top 10 most expensive markets: California ($4.87), Hawaii ($4.74), Washington ($4.74), Arizona ($4.35), Oregon ($4.33), Nevada ($4.26), Utah ($4.11), Alaska ($3.97), Idaho ($3.95) and Illinois ($3.92).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by 79 cents to settle at $72.53. Oil prices rose yesterday amid market optimism that summer demand may be more robust than expected, pushing prices higher than expected. Price increases have been capped this week despite the announcement from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, that member nations would continue to keep their production reduction agreement from May 2023 in place through 2024, and Saudi Arabia approved an additional cut of 1 million b/d starting in July 2023. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 500,000 bbl to 459.2 million bbl last week.
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