National Average Rises for First Time Since October; Still Below $3

For the first time since October, the nation’s average price of gasoline has risen over the last week, climbing 0.8 cents compared to a week ago, and stands at $2.98 per gallon, 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 7.5 cents from a month ago and is 7.1 cents per gallon lower than a year ago. The national average price of diesel has declined 1.8 cents in the last week and stands at $3.472 per gallon.

“As we edge closer to the end of the year, we’re seeing momentum for falling gas prices weaken, which is typical as the national average generally bottoms out between Thanksgiving and Christmas,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “With oil prices rising back above $70 last week, gas prices may have less potential to drop much further, though there may be a second window of lower prices in January or February in some areas, but even that won’t last long. While several states saw gas prices cycle last week, marked by a big jump in prices after a large decline, those that did see hefty jumps should see prices drift a bit lower, potentially making a second run at the season’s lowest prices. The West Coast, including California, should continue to see prices drift lower, but with just a few weeks left in 2024, all attention turns to 2025. GasBuddy’s 2025 Fuel Outlook, among the nation’s most accurate fuel price forecasts, will be released in the coming weeks, offering motorists a glimpse into gas prices for the coming year.”

OIL PRICES

After weeks of struggling to maintain the $70/bbl level, WTI crude oil rose above the threshold last week on reports that the EU will impose sanctions on over 40 vessels likely involved with exporting Russian oil. The U.S. has been reported to be considering similar options, helping to support the price of crude oil. In early Monday trade, WTI crude oil was down 44 cents to $70.85 per barrel, over $2 higher than last Monday’s $68.20 per barrel start. Brent crude oil was also down 38 cents to $74.11, but also checking in with a $2 weekly gain from $72.06 per barrel last week. However, retail data out of China still paints a bleak picture, showing weaker-than-expected numbers, putting more pressure on China to boost its stimulus as its economy continues to struggle.

OIL AND REFINED PRODUCTS

Last week’s report from the EIA showed a 1.4 million barrel decline in U.S. crude oil inventories, which are 6% below the five-year seasonal average, while the SPR tacked on an additional 700,000 barrels. Domestic oil production was estimated to reach another all-time high, hitting 13.63 million barrels per day. Gasoline inventories jumped 5.1 million barrels but remain slightly lower than last year and against the five-year seasonal average. Distillate inventories jumped 3.2 million barrels, and are nearly 7% above last year, but remain 4% below the seasonal five-year average. Implied gasoline demand, EIA’s proxy for retail demand, rose 73,000 bpd to 8.81 million barrels per day as refinery utilization fell 0.9 percentage points to 92.4%.

GAS PRICE TRENDS

The most common U.S. gas price encountered by motorists stood at $3.19 per gallon, up 40 cents from last week, due to price cycling in the Great Lakes states, followed by $2.99, $2.89, $2.79, and $3.09 rounding out the top five most common prices.

The median U.S. gas price is $2.89 per gallon, up 4 cents from last week and about 9 cents lower than the national average.

The top 10% of stations in the country average $4.07 per gallon, while the bottom 10% average $2.40 per gallon.

The states with the lowest average prices: Oklahoma ($2.44), Texas ($2.50), Arkansas ($2.55).

The states with the highest average prices: Hawaii ($4.44), California ($4.24), and Washington ($3.84).

Biggest weekly changes: Ohio (+21.6¢), Indiana (+16.2¢), Michigan (+12.2¢), Washington (-7.5¢), Idaho (-7.4¢)

DIESEL PRICE TRENDS

The most common U.S. diesel price stood at $3.49 per gallon, unchanged from last week, followed by $3.39, $3.29, $3.59, and $3.19 rounding out the top five most common prices.

The median U.S. diesel price is $3.39 per gallon, unchanged from last week and about 9 cents lower than the national average for diesel.

Diesel prices at the top 10% of stations in the country average $4.28 per gallon, while the bottom 10% average $2.87 per gallon.

The states with the lowest average diesel prices: Oklahoma ($2.96), Texas ($3.00), and Mississippi ($3.09).

The states with the highest average diesel prices: Hawaii ($5.24), California ($4.75), and Washington ($4.26).

Biggest weekly changes: Montana (-6.5¢), Oregon (-6.0¢), Idaho (-5.9¢), South Dakota (-5.8¢), Delaware (-5.3¢).