1/2
Photo by John Angelillo/UPI | License Photo
June 16 (UPI) — Recent data indicates that a decrease in demand following the Memorial Day holiday period and steady crude oil prices are contributing factors in maintaining stable gas prices.
The average retail price for a gallon of regular unleaded gasoline remained at $3.58 on Friday, consistent with the previous week and only slightly higher by 5 cents compared to the same time last month.
The price of crude oil, which plays a significant role in gasoline prices, has also remained stable. Since late April, West Texas Intermediate, the benchmark for U.S. crude oil prices, has fluctuated within the mid-$70 range.
AAA spokesperson Andrew Gross suggests that demand may have stabilized after the extended Memorial Day holiday. Recent federal data indicates a slight decrease in gas demand compared to the previous week.
“Drivers are benefitting economically, with a cost reduction of nearly $30 for 20 gallons of gas compared to last year,” Gross added. “Furthermore, with low oil prices, drivers can expect gas prices to remain steady or even decrease slightly in the near future.”
This time last year, the national average retail gas price was $5.00 per gallon. The higher prices at that time were significantly influenced by sanctions imposed on Russia, a major crude oil producer, due to its invasion of Ukraine.
Market conditions have since adapted to the absence of Russian oil, with support from countries like the United States and Norway.
A forecast from the Energy Information Administration (EIA), the statistical branch of the Energy Department, predicts that gasoline demand will only slightly surpass last year’s levels, growing by 110,000 barrels per day, or 1%.
The EIA anticipates an average gas price of $3.39 for this year, compared to $3.97 in 2022.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
