AAA said Monday that the demand for gasoline is weakening across the country as the COVID-19 numbers increase.
The latest Energy Information Administration (EIA) demand reading measures at 8.5 million b/d, which is about 11% less than a year ago. Currently, the national average for a gallon of gas is at $2.18–the first time since April the price has decreased. California’s average is at $3.16 per gallon.
Oil Market Dynamics
At the end of Friday’s formal trading session, WTI increased by 22 cents to settle at $41.29 per barrel. Domestic crude prices increased due to a slight decrease in the value of a U.S. dollar. However, crude prices could fall this week, since EIA’s weekly report revealed that total domestic inventories increased by 4.9 million bbl. The increase, amid falling gasoline demand, could mean that the domestic crude market is oversupplied.