For the third consecutive week, the national average price of gasoline has moved lower in the last week, falling 3.3 cents to $2.825 per gallon today, according to GasBuddy data compiled from over 10 million price reports over the last week. The national average now stands 2 cents lower than a month ago but is up 50 cents versus a year ago.
“The national average price of gasoline has fallen to its lowest level since May 7, some 105 days ago when many of us were dreaming of summer road trips and falling gas prices. After all, gas as cheap as last summer has been elusive the past few months, but it’s not too late to enjoy this summer’s lowest prices,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “Oil prices have held in the mid-$60s per barrel, the price of which has been determined by a delicate balancing act of global optimism and pessimism surrounding a long litany of possible economic issues. As we race towards summer’s finish line, we may see more pessimism weigh on oil markets, offering some relief to weary drivers who’ve seen the most expensive summer at the pump since 2014. Labor Day will likely claim the cheapest prices for a summer holiday this year, and I’m sure millions of motorists will take advantage.”
The week begins with West Texas Intermediate crude oil rising 21 cents to $66.12 per barrel, slightly lower than a week ago as oil tests its key 200-day moving averages. Should oil find the basis to rally this week and resists falling under the key metric, it may signal a longer rally to come. If oil can’t find enough ground to stand on and drops under its key moving average, it may signal a larger drop set to come. With summer driving season wrapping up in mere weeks, demand for gasoline and crude oil is likely to drop, putting downward pressure on oil prices. Meanwhile, geopolitical tensions may affect oil supply and put upward pressure on prices. The future remains murky while both bearish and bullish pressure exists nearly equally on oil prices.
Last week’s report from the Energy Information Administration showed a large and surprising build in oil inventories, rising nearly 7 million barrels while gasoline inventories saw a typical seasonal decline of 700,000 barrels. Summer gasoline requirements continue through September 15, so refiners are likely beginning to wind down production of the costly summer variety of gasoline, meant to meet stringent EPA regulations during the year’s warmest months. After September 15, the nation will begin to transition back to less stringent and costly winter gasoline. More relief will likely show up at pumps across the country starting in mid-September, typically lasting through around Thanksgiving.
Retail gasoline prices at the state level were nearly all lower with 47 states seeing prices increase, 1 saw no change, while 2 states saw average prices move higher.
States with the largest change in average prices in the last week: Michigan (-11 cents), Illinois (-8 cents), Delaware (-4 cents), Indiana (-4 cents), Florida (-4 cents), Minnesota (-4 cents), Georgia (-3 cents), Oregon (-3 cents), Louisiana (-3 cents) and Arizona (-3 cents).
States with the lowest average prices: South Carolina ($2.51), Alabama ($2.54), Mississippi ($2.54), Oklahoma ($2.54), Arkansas ($2.55), Texas ($2.58), Louisiana ($2.58), Tennessee ($2.60), Virginia ($2.60) and Missouri ($2.61).
States with the highest average prices: Hawaii ($3.70), California ($3.58), Washington ($3.35), Alaska ($3.32), Oregon ($3.24), Idaho ($3.22), Nevada ($3.17), Utah ($3.16), Pennsylvania ($3.04) and Connecticut ($3.02).
