The Shadow
RICHMOND — The national gas price average decreased by a nickel over the past week, pushing the year-over-year savings to $1.03/gallon.
Monday, 20 states have pump price averages that are $1/gallon or more cheaper compared to last year, with another dozen states within a dime of reaching the mark.
“One in four U.S. gas stations is selling gas for $1.49 or less,” said Jeanette Casselano, AAA spokeswoman. “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 percent, a level not reported by the Energy Information Administration 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.
The nation’s 10 largest weekly decreases in gas prices were in: 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 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).
Mid-Atlantic and Northeast state averages are two to six cents cheaper on the week.
With the latest declines, only four states in the region carry averages of more than $2/gallon: New York ($2.22), Washington, D.C. ($2.16), Pennsylvania ($2.08) and New Jersey ($2.05). At $1.68, North Carolina has the lowest state average in the region.
Increasing by 1.3 million bbl, total regional gasoline stocks now sit at a healthy 71.8 million bbl. Stocks have bumped up for a month by a substantial 11 million bbl. EIA levels were reported at 60 million bbl for the week ending March 20.
Given the substantial amount of gasoline stocks, regional refinery utilization has plummeted to 39 percent.
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.
