Decreased gas demand leads to lower prices at the pump

Empty gas station in Houston, Texas.

Empty gas station in Houston, Texas.
picture: Brandon Bell (Getty Images)

In a world where everything seems to be getting worse, two things are getting better: gas prices And the Best Gun . movies. We will focus on gas prices for the purposes of this article, because this is gas price monitoring. Anyway, the national average price for a gallon of gas is now $4.41, according to AAA. That’s less than three Cents from yesterday alone.

reduction trend was It’s been happening since prices peaked at $5.02 in mid-June. If you’re wondering what’s fueling (heh) this trend, look no further than the extremely low demand for gas. AAA Reports showing new data from the Energy Information Administration (EIA) Although gas demand increased slightly last week to 8.52 million barrels per day, it is still 800,000 barrels per day lower than the same period last year.

In fact, these consumption figures are consistent with the demand we saw in mid-July 2020 – when pandemic restrictions were at their height.

Another thing that points to the idea of ​​lower demand is that our total domestic stockpiles rose by 3.5 million barrels last week to 228.4 million barrels.

At the same time, crude oil prices fell.

At the close of the official trading session on Wednesday, West Texas Intermediate crude fell by $1.96 to settle at $102.26. Crude oil prices fell this week as the market continues to worry that weak demand, which was expected to remain strong throughout the summer, may continue to drive prices lower. In addition, the Energy Information Administration reported that total domestic crude stocks fell by 500,000 barrels to 426.6 million barrels last week, just below 13 million barrels from the mid-July 2021 storage level.

All this leads to the easement that we see in the pump. There are now seven states where the average price of a gallon of gas is $4 or less gallons. However, diesel prices are still relatively high. Only two states in the entire country have average diesel prices under $5 per gallon.

On that note, let’s take a look at the high and low gas prices across the country.

Here are the highest average gas prices in the country in order of highest price per standard gallon:

  • California – $5.79 Regular | $6.01 mid | 6.15 USD Premium | 6.60 dollars diesel
  • Hawaii – $5.56 Regular | $5.78 mid | 6.01 dollar premium | 6.14 dollars diesel
  • Alaska – $5.26 Regular | $5.52 mid | $5.69 (Good) Premium | $5.92 diesel
  • Oregon – $5.21 Regular | $5.44 mid | $5.64 Premium | $ 6.26 diesel
  • Nevada – 5.19 USD Regular | $5.45 mid | $5.65 Premium | $5.59 diesel

Here are the lowest average gasoline prices in the country in order of lowest price per regular gallon:

  • Texas – $3.92 Regular | $4.33 mid | Premium $4.65 | $4.89 diesel
  • South Carolina – $3.93 Regular | $4.34 mid | Premium $4.65 | $5.08 diesel
  • Georgia – $3.95 Regular | $4.37 mid | $4.71 Premium | 5.15 dollars diesel
  • Mississippi – $3.96 Regular | $4.34 mid | $4.68 Premium | $5.02 diesel
  • Alabama – $3.99 Regular | $4.41 mid | $4.76 Premium | $5.18 diesel

Enjoy your weekend, or otherwise.

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