Gas Prices Slip to Lowest Level Since March, Diesel at Multi-Year Lows

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For the third straight week, the nation’s average price of gasoline has declined, falling 4.2 cents compared to a week ago to $3.37 per gallon today, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 11.4 cents from a month ago and is 47.8 cents per gallon lower than a year ago. The national average price of diesel has fallen 2.6 cents in the last week and stands at $3.69 per gallon—the lowest level in 940 days.

“Gasoline and diesel prices continue to trail off across much of the country as summer demand fades away. Lower demand in other oil-consuming nations is also helping to lead the downward pressure on pump prices as we approach Labor Day,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “With little new action in the Middle East to rile up prices and Hurricane Ernesto remaining far out at sea, it looks like the downward trend could continue into the week ahead. As more schools begin to resume, gasoline demand will likely continue to ease. With the transition to winter gasoline less than a month away for the majority of the nation, gas prices will soon begin their seasonal cooling off—just as temperatures soon will as well.”

OIL MARKETS

With economic concerns persisting on one of the balance of markets and with the potential of further attacks in the Middle East, oil prices have been somewhat in limbo over the last week. Chinese demand concerns have re-entered the picture with a worse-than-expected outlook on the Chinese economy, meanwhile, the US economy continues to be a major question. In early Monday trade, a barrel of WTI crude oil was at $76.40, down slightly over $1 from last week’s $77.66 per barrel start. Brent crude oil was also in the red as of Monday morning, off 30 cents to $79.38 per barrel, down slightly from last week’s $80.46 per barrel start. As Middle East talks continue, oil prices could come under further pressure, should there be a breakthrough. New data showed China’s diesel and gasoline exports tumbling in July as weak crack spreads likely eroded output at refiners.

OIL AND REFINED PRODUCTS

Last week’s report from the EIA showed a 1.4 million barrel increase in crude oil inventories, as the SPR gained another 700,000 barrels. Gasoline inventories slipped nearly 3 million barrels, while distillates fell 1.7 million. Implied gasoline demand rose 78,000 bpd to 9.05 million, while refinery utilization rose 1 percentage point to 91.5%. Total U.S. petroleum inventories stand up 21.4 million barrels compared to a year ago while including gains in the SPR, stocks are up nearly 50 million barrels versus a year ago.

FUEL DEMAND

According to GasBuddy demand data driven by its Pay with GasBuddy™ fuel card, U.S. retail gasoline demand saw a rise of 0.1% for the week ending August 17 (Sun-Sat). Broken down by PADD region, demand rose 2.5% in PADD 1, fell 1.0% in PADD 2, rose 1.0% in PADD 3, fell 0.8% in PADD 4, and fell 4.1% in PADD 5. GasBuddy models U.S. gasoline demand at 8.96 million barrels per day.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $3.29 per gallon, down 20 cents from last week, followed by $3.39, $3.19, $3.09, and $3.49 rounding out the top five most common prices.

The median U.S. gas price is $3.28 per gallon, down 6 cents from last week and about 9 cents lower than the national average.

The top 10% of stations in the country average $4.48 per gallon, while the bottom 10% average $2.83 per gallon.

The states with the lowest average prices: Mississippi ($2.91), Oklahoma ($2.92), Texas ($2.97).

The states with the highest average prices: Hawaii ($4.59), California ($4.52), and Washington ($4.14).

Biggest weekly changes: Indiana (-12.7c), Ohio (-12.7c), Michigan (-11.2c), Illinois (-10.5c), Delaware (-9.5c)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.69 per gallon, unchanged from last week, followed by $3.49, $3.59, $3.79, and $3.99 rounding out the top five most common prices.

The median U.S. diesel price is $3.62 per gallon, down 2 cents from last week and about 7 cents lower than the national average for diesel.

Diesel prices at the top 10% of stations in the country average $4.65 per gallon, while the bottom 10% average $3.06 per gallon.

The states with the lowest average diesel prices: Texas ($3.20), Oklahoma ($3.21), and Mississippi ($3.37).

The states with the highest average diesel prices: Hawaii ($5.35), California ($4.84), and Washington ($4.41).

Biggest weekly changes: Delaware (-12.2c), Maryland (-9.6c), Texas (-7.0c), Utah (-5.8c), Colorado (+5.6c).