Despite the surge in travel over the long Memorial Day weekend, the national average for a gallon of gas didn’t flinch and is still $3.57, the same as a week ago. AAA forecast that more than 37 million Americans drove to their holiday destinations.
“Although millions hit the road last week, gasoline demand fell,” said Andrew Gross, AAA spokesperson. “Meanwhile, the cost for a barrel of oil dropped below $70 per barrel. Pump prices could dip further as the start of summer approaches.”
According to new data from the Energy Information Administration (EIA), gas demand decreased from 9.43 to 9.1 million b/d last week. Lower demand has helped to cap increases in pump prices. Meanwhile, total domestic gasoline stocks dropped slightly to 216.1 million bbl. If gas demand declines, drivers will likely see pump prices fall.
Today’s national average of $3.57 is four cents less than a month ago but $1.10 less than a year ago.
Since last Thursday, these 10 states have seen the largest decreases in their averages: Arizona (−10 cents), Indiana (−9 cents), Ohio (−8 cents), Wisconsin (−6 cents), Iowa (−7 cents), Illinois (−6 cents), Michigan (−5 cents), Delaware (−3 cents), New Mexico (−2 cents) and Louisiana (−2 cents).
The nation’s top 10 least expensive markets: Mississippi ($2.98), Texas ($3.12), Louisiana ($3.12), Arkansas ($3.12), Alabama ($3.14), South Carolina ($3.20), Tennessee ($3.20), Missouri ($3.20), Oklahoma ($3.23) and Kansas ($3.26).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $1.37 to settle at $68.09. Additionally, the EIA reported that total domestic commercial crude inventories increased significantly by 4.5 million bbl to 459.7 million bbl last week.
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