August 25, 2024 — The national average price for gasoline has decreased for the fourth straight week, falling by 6.2 cents to $3.30 per gallon, according to recent data from GasBuddy®. This drop represents a 20.7 cent reduction from a month ago and a substantial 49.2 cent decrease from this time last year.
The decline in gasoline prices is a welcomed relief for motorists as Labor Day approaches, providing a more affordable opportunity for road trips. GasBuddy® reports that prices have now reached their lowest point since February. Eight states currently have average gas prices below $3 per gallon, and nearly 20% of gas stations nationwide are selling gasoline at $2.99 or less.
Patrick De Haan, head of petroleum analysis at GasBuddy®, noted, “As we approach Labor Day, it’s fitting that the national average has dropped for four consecutive weeks. This trend is expected to continue into the fall, bringing even better news for travelers. Our upcoming Labor Day travel forecast will reveal how much Americans will save on their road trips compared to last year.”
Oil Markets Update
Oil prices have surged this week, driven by Middle East tensions and anticipated Federal Reserve rate cuts. As of early Monday, West Texas Intermediate (WTI) crude oil was up $1.91, trading at $76.74 per barrel, while Brent crude rose $2.02 to $81.04 per barrel. The Fed’s potential interest rate cuts and ongoing regional conflicts are contributing to increased oil prices. Additionally, oil prices crossed the 200-day moving average last Friday, a bullish signal that could drive prices higher.
Oil and Refined Products
The latest report from the Energy Information Administration (EIA) indicates a notable decrease in oil inventories by 4.6 million barrels, now 5% below the five-year average for this time of year. Gasoline inventories fell by 1.6 million barrels, and distillates dropped by 3.3 million barrels. Refinery utilization increased to 92.3%, and implied gasoline demand rose by 147,000 barrels to 9.19 million barrels per day. Total U.S. oil inventories are up by 18.5 million barrels compared to the previous year.
Fuel Demand
GasBuddy® data shows a 1.9% increase in U.S. retail gasoline demand for the week ending August 24. Demand rose across various regions, with PADD 1 up by 2.1%, PADD 2 by 1.8%, PADD 3 by 1.8%, PADD 4 by 0.1%, and PADD 5 by 3.7%. Current U.S. gasoline demand is estimated at 9.15 million barrels per day.
Gas Price Trends
The most common gas price nationwide is now $3.19 per gallon, down 10 cents from last week. The median gas price stands at $3.21 per gallon, down 7 cents from the previous week. The top 10% of gas stations charge an average of $4.39 per gallon, while the bottom 10% offer prices as low as $2.74 per gallon.
States with the lowest average gas prices include Oklahoma ($2.79), Mississippi ($2.85), and Texas ($2.87). Conversely, the highest average prices are found in Hawaii ($4.55), California ($4.53), and Washington ($4.13).
Diesel Price Trends
The most common diesel price remains steady at $3.69 per gallon. The median diesel price has decreased by 3 cents to $3.59 per gallon. Diesel prices at the top 10% of stations average $4.52 per gallon, while the bottom 10% offer prices as low as $2.99 per gallon.
