Spring has sprung with gas demand surging last week as motorists took advantage of better driving weather. But fears of a recession caused global oil prices to hover near $70 a barrel, mitigating a rise in gas prices.
The national average for a gallon of regular gasoline drifted lower since last week by three cents, then bounced up a penny overnight to hit $3.44.
“We may be seeing a return to seasonal trends in demand with the arrival of warmer weather and the summer travel season just around the corner,” said Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “But oil prices trending about $10 a barrel less than we saw the first week of the month could mitigate any increase at the pump for now.”
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.59 million to 8.96 million b/d last week. Meanwhile, total domestic gasoline stocks decreased significantly by 6.4 million bbl to 229.6 million bbl last week. Increasing demand amid tighter supply would typically push pump prices higher; however, recent lower oil prices have pushed prices down.
Quick Stats
Since last Friday, these 10 states have seen the largest decreases in their averages: Colorado (−17 cents), Delaware (−10 cents), Ohio (−10 cents), Michigan (−8 cents), Indiana (−8 cents), Nevada (−7 cents), Nebraska (−6 cents), New Jersey (−6 cents), Utah (−6 cents) and California (−5 cents).
The nation’s top 10 least expensive markets: Mississippi ($2.99), Oklahoma ($3.02), Arkansas ($3.02), Missouri ($3.03), Kansas ($3.04), Texas ($3.08), Louisiana ($3.08), Alabama ($3.10), Tennessee ($3.14) and South Carolina ($3.15).
