According to AAA, the national price average of gas was at $2.19 while California is at $3.14 per gallon. This comes as 1/3 of states had gas prices decrease. They say State averages saw minimal fluctuation as demand roughly held steady over the last four weeks.
“During the last month, demand has averaged about 8.6 million b/d while, gasoline stocks have steadily declined,” said Jeanette Casselano, AAA spokesperson. “Week by week, we are seeing mostly regional fluctuation at the pump based on gasoline supply and demand.”
At 8.6 million b/d, the Energy Information Administration (EIA) measures demand at a 1% decrease week-over-week, 9% increase month-over-month and a 6% decrease year-over-year. Meanwhile, gasoline stocks measure at a 1% weekly decline, a 3% decrease month-over-month, but a 7% increase compared to last year.
Pump price increases in the West Coast region were moderate last week, with most states seeing their averages increasing by +2 cents. Hawaii ($3.21) and California ($3.14) remain the most expensive markets in the country. Washington ($2.79), Oregon ($2.66), Nevada ($2.64), Alaska ($2.52) and Arizona ($2.35) follow.
According to EIA’s latest weekly report, total gas stocks in the region increased from 29.6 million bbl to 30.9 million bbl last week. If demand increases in the region this week, healthy stock levels will likely help to moderate pump price increases.
Oil Market Dynamics
At the end of Friday’s formal trading session, WTI decreased by 16 cents to settle at $40.59 per barrel. Domestic crude prices fell after EIA’s weekly report revealed that total domestic crude inventories decreased by 7.5 million bbl to 531.7 million bbl. Decreasing crude stocks could mean that crude production is beginning to meet demand, which could stabilize crude prices this week, as coronavirus outbreaks continue to grow worldwide.