washington d.c.. – Stable global oil prices and modest domestic demand for gasoline pushed prices at the pump down a nickel last week to $3.90.
“Drivers are now enjoying gas prices that are $1.11 lower than their peak in mid-June,” said AAA spokesman Andrew Gross. “But now we need to keep an eye on the weather as hurricane season approaches. These storms can affect prices by disrupting oil production in the Gulf of Mexico and impacting large coastal refineries.
According to data from the Energy Information Administration (EIA), gas demand increased slightly from 9.12 million bpd to 9.35 million bpd last week, which is almost identical to the same period last year. Total domestic gasoline inventories fell nearly 5 million barrels to 215.7 million barrels.
Although demand for gasoline has increased and supply has tightened, lower oil prices have helped lower prices at the pump. If oil prices drop slightly, drivers will likely continue to see pump prices fall.
The current national average of $3.90 is 51 cents lower than a month ago, but 74 cents higher than a year ago.
Top 10 weekly declines nationwide: Florida (?12 cents), West Virginia (?11 cents), Maine (?11 cents), New Jersey (?11 cents), Rhode Island (? 11 cents), Vermont (?11 cents), Massachusetts (?11 cents), Wyoming (?10 cents), Connecticut (?10 cents) and Mississippi (?10 cents).
The 10 cheapest markets in the country: Arkansas ($3.41), Mississippi ($3.43), Georgia ($3.43), Texas ($3.44), Tennessee ($3.44), Louisiana ($3.46), South Carolina ($3.46), Missouri ($3.47), Alabama ($3.47), and Kansas ($3.48).
Oil market dynamics
At the close of Friday’s official trading session, WTI was up 27 cents to settle at $90.77. Although crude prices rose at the end of the week due to the EIA report that total domestic crude supply fell by 7 million barrels to 425 million barrels, crude prices declined earlier in the week after US housing data showed residential construction fell to a 1.5 low. years in July.
Rising mortgage rates, combined with rising material costs, played a role in lowering demand for new homes. Falling demand for housing has also pushed oil demand expectations down. If crude demand expectations remain weak this week, crude prices could decline further.
Drivers can find current gas prices along their route using the AAA TripTik Travel Planner.