AAA: Average Price of Gas Drops 6 Cents on the Week

AAA reported Monday that the national average of a gallon of gas dropped 6 cents on the week which continues a downward trend since Memorial Day. They even called the decline “unusual” for this time of the year.

The average cost of gas is $2.68 which is also 17 cents less than last month and 20 cents less than the same time last year.

California continues to be the most expensive state for a gallon of gas at $3.81 per gallon with Hawaii right behind with $3.64 and Washington at $3.41.

The EIA’s recent report for the week ending on June 7 showed that West Coast gasoline stocks increased slightly by 90,000 bbl from the previous week and sit at 30.8 million bbl. The current level is 700,000 bbl less than last year’s level at this time, which could cause prices to spike if there is a supply disruption or gas demand surges in the region this week.

AAA said the latest Energy Information Administration (EIA) report reveals that total domestic gasoline inventories jumped a million bbl last week, helping to push pump prices lower. According to OPIS, strong production output and increased imports have helped gasoline storage levels grow consistently over the past four weeks.

“Growing gasoline inventories are contributing to relief at the pump as we head into summer,” said Jeanette Casselano, AAA Spokesperson. “Current U.S. inventories sit at nearly 235 million bbl, which is helping to feed growing demand.”

According to the latest EIA report, gasoline demand reached 9.877 million b/d last week – the 6^th highest weekly count on record. Current demand levels are on par with volumes seen this same time last year (9.879 million b/d). Today’s national average is $2.68, which is six cents cheaper than last week, 17 cents less than last month and 20 cents less than the same time last year.

Source: AAA