Gas Prices Remain in the Slow Lane
WASHINGTON, D.C. — With domestic demand decidedly in the doldrums and the cost of oil retreating, the national average for a gallon of gas dipped 2 cents to $3.65, AAA reported.
"Domestic gas demand is pretty pokey at the moment, which is often the case in the runup to Memorial Day and the traditional start of summer driving season," said Andrew Gross, AAA spokesperson. "The recent national average price of $3.67 could be the peak until hurricane season is well underway. But as always, the wildcard will be the cost of oil, so stay tuned."
New data from the Energy Information Administration (EIA) shows gas demand fell from 8.66 million to 8.42 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by .6 million bbl to 226.7 million bbl. Lower demand and a drop in oil prices could push pump prices lower, AAA said.
This continues a pattern seen since the beginning of April, where the combination of lackluster customer interest and ongoing international tensions have depressed prices.
Other outside influences could also include the Environmental Protection Agency's recent waivers to allow the sale of ethanol-blended fuel E15 throughout the summer, though the effect on costs for consumers has yet to be seen.
Currently, the nation's top 10 least expensive markets are Mississippi ($3.09), Colorado ($3.13), Louisiana ($3.15), Oklahoma ($3.16), Arkansas ($3.21), New Mexico ($3.23), Kansas ($3.23), Alabama ($3.25), Texas ($3.25) and Tennessee ($3.27).
The nation's top 10 most expensive markets are California ($5.40), Hawaii ($4.80), Washington ($4.65), Nevada ($4.59), Oregon ($4.43), Alaska ($4.37), Arizona ($4.09), Utah ($3.97), Idaho ($3.93) and Illinois ($3.91).
At the close of the formal trading session on April 24, West Texas Intermediate (WTI) decreased by 55 cents to settle at $82.81. Oil prices dipped despite the EIA reporting crude oil inventories fell by 6.4 million barrels from the previous week.
At 454 million barrels, U.S. crude oil inventories are 4% below the five-year average for this time of year.