DROP IN AVERAGE GAS PRICES GAINS MOMENTUM, DIESEL ON CUSP OF $3.99 AVERAGE

For the second straight week, the nation’s average price of gasoline has declined, falling 6.3 cents from a week ago to $3.58 per gallon yesterday according to GasBuddy data compiled from more than 11 million individual price reports covering over 150,000 gas stations across the country. The national average is up 8.2 cents from a month ago but 59.6 cents per gallon lower than a year ago. The national average price of diesel has fallen 5.3 cents in the last week and stands at $4.07 per gallon, $1.18 lower than one year ago.

“After declining the prior week at a slow pace, the drop in the national average has gained momentum. Oil prices have come under additional selling pressure alongside wholesale gasoline prices, giving retailers room to pass on the lower prices,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Diesel prices have followed, falling to their lowest in over 13 months as demand remains weak due to concerns over the economy. With refinery maintenance wrapping up, we should see supplies start to build in the weeks ahead, just in time for the summer driving season, potentially putting more downward pressure on prices.  However, while a majority of states saw gas prices drop, some, particularly in the Northeast, have yet to join in thanks to being the last to make the switch to summer gasoline – but relief will be on the way soon in areas that have resisted the fall thus far.”

OIL PRICES
With OPEC+’s voluntary production cuts taking effect today, the price of oil was under continued selling pressure. But with refiners wrapping up maintenance and ramping up inputs, the drop in oil prices may not be sustained much longer. In early Monday trade, a barrel of West Texas Intermediate crude oil was down $1.61 to $75.15 per barrel, down over $2 from last Monday’s $77.72 per barrel start. Brent crude oil was also seeing selling pressure Monday morning, at last check down $1.54 to $78.79 per barrel, below the key $80 mark for the first time in a few weeks, and down from last Monday’s $81.46 per barrel start. Oil inventories have continued to edge lower in recent weeks, even against the backdrop of SPR supplies moving into commercial inventories.

OIL AND REFINED PRODUCTS
Last week’s report from the Energy Information Administration showed a fairly significant drop of 5.1 million barrels in oil inventories, as refinery utilization rose slightly ahead of the start of the summer driving season, which is typical with the end of maintenance season. Domestic oil production fell 100,000bpd to 12.2 million barrels, while the SPR saw the release of 1 million barrels. Gasoline inventories saw a fairly robust 2.4 million barrel decline, partially due to a huge print from the EIA on implied gasoline demand, a proxy for retail demand, which surged to a shockingly high 9.51 million barrels per day. Distillate inventories fell by 600,000 barrels, while exports reached 10.52 million barrels.

FUEL DEMAND
According to GasBuddy demand data driven by its Pay with GasBuddy fuel card, U.S. retail gasoline demand saw a rise of 1.6% last week (Sun-Sat). Broken down by PADD region, demand rose 1.0% in PADD 1, rose 3.4% in PADD 2, rose 0.3% in PADD 3, fell 1.2% in PADD 4, and rose 1.4% in PADD 5.

GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists stood at $3.39 per gallon, down 10 cents from last week, followed by $3.49, $3.29, $3.59, and $3.19 rounding out the top five most common prices.
The median U.S. gas price is $3.45 per gallon, down 6 cents from last week and about 13 cents lower than the national average.
The top 10% of stations in the country average $4.80 per gallon, while the bottom 10% average $3.01 per gallon.
The states with the lowest average prices: Mississippi ($3.05), Texas ($3.14), and Louisiana ($3.15).
The states with the highest average prices: California ($4.82), Hawaii ($4.76), and Arizona ($4.72).

DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $3.99 per gallon, unchanged from last week, followed by $3.89, $3.79, $4.09, and $4.19 rounding out the top five most common prices.
The median U.S. diesel price is $3.99 per gallon, unchanged from last week and about 8 cents lower than the national average for diesel.
Diesel prices at the top 10% of stations in the country average $5.11 per gallon, while the bottom 10% average $3.35 per gallon.
The states with the lowest average diesel prices: Texas ($3.48), Louisiana ($3.68), and Oklahoma ($3.74).
The states with the highest average diesel prices: Hawaii ($5.87), California ($5.15), and Washington ($4.94)

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