TAMPA, Fla. (June 5, 2017) — The national average price for gasoline drifted slightly higher last week. Sunday’s average price of $2.38 is 1-cent more than a week ago, according to AAA, whose data is collected from credit card swipes and direct feeds from 120,000 gas stations nationwide, in cooperation with OPIS and Wright Express.
Gasoline demand reached record highs during Memorial Day weekend, according to data provided by the EIA. That combined with another week of declining crude inventories was still not enough to boost oil prices. The price of WTI settled at $47.66/b on Friday – the lowest daily settlement in three weeks. The market will likely stay at current levels until there are more significant draws in supplies. Reuters reports that the market moved lower in response to President Trump’s decision to withdraw from an international climate accord, which speculators believe would spur further domestic production and contribute to a persistent global oversupply. U.S. oil production climbed again last week, hitting 9.34 million barrels per day – the highest level since August 2015. U.S. drillers added 11 rigs last week, setting a new record of 20 consecutive weeks of growth.
“This bearish sentiment has set the stage for lower prices at the pump,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “How the market responds this week will be a strong indicator for where gas prices will go this summer. As it stands right now, summer gas prices should remain at or below last year’s levels.”
(Based on weekly data provided by the EIA)
Crude oil prices dropped $2 on the week, settling at $47.66 – the lowest daily settlement since May 10
U.S. crude inventories decreased by 6.4 million barrels from the week before
Domestic crude production climbed, reaching the highest level since August 2015, growing another 22,000 bpd
Refineries are running strong, at a rate of 1-percentage point higher than the week before
Wholesale gasoline prices lost strength by about 3.7% during the past week
Domestic gasoline production increased 1.8% compared to the week before
Gasoline supplies dropped 1.2% domestically, but grew 0.13% at Gulf Coast refineries
Gasoline demand reached record-highs, with implied demand levels growing 1.2% from the week before; and almost 1.1% better than this time last year. Even still, the 4-week average remains lower than last year, by 0.7%
Gas Price Survey Methodology
AAA updates fuel price averages daily at http://www.GasPrices.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.
About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 57 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.