AAA reported Monday that the national gas price average decreased by a nickle which push prices down to $1.03 per gallon during the year–the national average now stands at $1.81.
At least 20 states have pump price average that are $1 gallon or more cheaper gas when compared to last year with a dozen states within a dime of reaching this according to AAA.
California meanwhile is paying on average $2.81 while it was also announce that Marathon Petroleum would temporarily idle its 166,000 b/d refinery in Martinez, CA later this month due to weak demand caused by COVID-19.
According to the company, as of April 27, it will use an “integrated network of assets to continue meeting customer commitments and [does] not anticipate supply disruptions in the region.” Marathon did not announce a timeline for when the refinery could expect to resume operations, but it did state that it intends to resume “once demand levels support doing so.”
“One in four U.S. gas stations is selling gas for $1.49 or less,” said Jeanette Casselano, AAA spokesperson. “Even with regional refinery rates dropping, we will continue to see gas prices decrease though potentially at a slower rate than the past few weeks.”
On the week, U.S. gasoline demand was stable at 5.1 million b/d as refinery rates dipped down to 69%, a level not reported by the Energy Information Administration (EIA) in more than a decade. Despite lower run rates amid low demand, gasoline stocks increased. Total U.S. stock levels measure at a record 262 million bbl – the highest weekly domestic stock level ever recorded by EIA, since it began reporting the data in 1990.
Quick Stats
- The nation’s top 10 largest weekly decreases are: Alaska (-10 cents), Idaho (-10 cents), Wisconsin (-8 cents), Nevada (-7 cents), Arizona (-7 cents), Minnesota (-7 cents), Washington (-7 cents), Kansas (-7 cents), California (-6 cents) and Michigan (-6 cents).
- The nation’s top 10 least expensive markets are: Wisconsin ($1.22), Oklahoma ($1.38), Ohio ($1.41), Michigan ($1.46), Kentucky ($1.46), Arkansas ($1.47), Indiana ($1.48), Iowa ($1.49), Missouri ($1.52) and Mississippi ($1.53).
Oil Market Dynamics
At the end of Friday’s formal trading session, WTI decreased by $1.60 to settle at $18.12 per barrel. Crude prices were volatile last week in the wake of a historic 9.7-million b/d crude oil production reduction agreement for May and June 2020 between the Organization of the Petroleum Exporting Countries and its allies, including Russia. As oil inventories continue to grow around the globe and crude demand falls worldwide, crude prices have dropped dramatically as the public health, economic and financial impact of COVID-19 increases. Crude prices will likely remain volatile this week, as the market continues to assess how low crude prices could fall during the ongoing pandemic.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance.
Learn more at AAA.com/mobile.
