Motorists See Minimal Movement at the Pump over Holiday Weekend

Motorists See Minimal Movement at the Pump over Holiday Weekend

WASHINGTON, D.C - At $3.04, the national gas price average only increased one penny leading up to Memorial Day weekend. The majority of states saw no change to pump prices or a decline on the week. However, prices may not stay stagnant for long. For the week ending May 21, demand jumped to 9.4 million b/d—the highest reported number since early March 2020 and up nearly 30% over the same week last year, indicating motorists are filling up more frequently.

“Gasoline supply and demand levels are looking more like typical summer numbers as demand has steadily jumped week-over-week since the end of April and supply declines. The increasing demand and decreasing supply combined with more expensive crude oil prices mean gas prices are likely to fluctuate throughout June,” said Jeanette McGee, AAA spokesperson. “We could see some decreases early in the month and increases mid-month as the school year ends and summer travel increases.”

Today’s average is $1.05 more than last year at this time and 15 cents more expensive than last month. The May national gas price averaged $3/gallon. That is just 11 cents more than the May 2018 and 2019 national averages. With a $3+/gallon average at the start of June, this month could prove to be the most expensive average in years.

Quick Stats

The nation’s top 10 largest weekly changes: Michigan (+9 cents), Indiana (+6 cents), Ohio (+6 cents), Illinois (+5 cents), Kentucky (+4 cents), California (+4 cents), Oklahoma (−4 cents), South Carolina (−3 cents), Texas (−3 cents) and Nebraska (−3 cents).

The nation’s top 10 least expensive markets: Louisiana ($2.70), Mississippi ($2.70), Texas ($2.70), Oklahoma ($2.71), Missouri ($2.71), Arkansas ($2.75), Kansas ($2.81), Alabama ($2.81), South Carolina ($2.82) and Minnesota ($2.83).

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI decreased by 53 cents to settle at $66.32. Although prices ended the day down due to market liquidation at the end of the month, crude prices gained on the week after the Energy Information Administration’s weekly report showed that total domestic crude inventories decreased by 1.7 million bbl to 484.3 million bbl. However, last week’s price gains were limited by market concerns that increasing coronavirus infections around the world could reduce crude consumption this year. For this week, crude prices could climb further if EIA’s next report shows another decline in crude stocks.


 

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