The expression “supply and demand” has been drummed into our heads. If there’s a big demand, the price will go up, right? Maybe that expression should be “oil drummed” into our heads relative to gas prices. But for some reason, the rule didn’t work. Despite huge volumes of holiday drivers, and Hurricane Beryl smacking into the coast of Texas, gas prices barely moved from last week.
Gas prices barely move—”slight nudge higher”
The drivers’ friend AAA reports the national average for a gallon of gas rose three cents to $3.54 from last week, describing it as a “slight nudge higher.” Add to the strangeness of the tiny increase, oil costs are hovering above $80 per barrel.
“The damage from Beryl caused limited damage to Gulf Coast energy facilities,” said Andrew Gross, AAA spokesperson. “And while a record 60 million travelers were forecast to hit the highways for the July 4th holiday, the overall demand number for gasoline dropped. That is a rare feat for a holiday week and may point to a change in demand trends.”
Demand droops, production increases
The latest Energy Information Administration (EIA) information shows gas demand dipped from 9.42 million barrels per day to 9.39 last week. Total domestic gasoline stocks fell from 231.7 to 229.7 million barrels. And gasoline production increased last week, averaging 10.3 million barrels daily. Tepid gasoline demand and waffling oil costs may lead to some short-term stability in pump prices.
Today’s national average is $3.54, 10 cents more than a month ago and the same as a year ago.
Other numbers of interest to drivers
The nation’s top 10 most expensive markets are:
- California ($4.78)
- Hawaii ($4.69)
- Washington ($4.28)
- Nevada ($4.04)
- Oregon ($4.02)
- Illinois ($3.89)
- Alaska ($3.87)
- Washington, D.C. ($3.71)
- Pennsylvania ($3.69)
- New York ($3.63)
The nation’s top 10 least expensive markets are:
- Mississippi ($3.09)
- Arkansas ($3.07)
- Louisiana ($3.11)
- Tennessee ($3.13)
- Oklahoma ($3.15)
- Kansas ($3.16)
- Texas ($3.17)
- Missouri ($3.17)
- Alabama ($3.20)
- Nebraska ($3.26)
##RVT1165b
Thank you, Russ and Tina! 🙂 One thing to always keep in mind with data or forecasts by the U. S. Energy Information Administration is that these are estimates based on limited data. There are confidence intervals around all the point estimates. Thanks again, have a great week, safe travels, and safe stays! 🙂
There is no mention in this article that the US Government has released 1million barrels of gasoline from the ‘Strategic Petroleum Reserves’ over this same time frame. According to the US Energy Department, the entire reason was to artificially lower the prices of gasoline. Once the US Government starts to refill those reserves, the prices will go up unless oil and gas production goes up, which is not on the agenda at this time.
Not true here in the area N of Tampa, FL. We have seen about a 30¢ per gallon increase over the last 3 weeks. So much for the phony “inflation numbers”.