U.S. motorists are getting a reprieve at the pump just as the shift to cheaper winter gasoline begins, with GasBuddy data showing the national average price falling 3.6 cents over the last week to $3.12 per gallon. Diesel also eased 2.6 cents to $3.658. The slide comes as refineries ramp up supply and seasonal regulations loosen, setting the stage for further declines.
“While gas prices fell in more states than they rose last week, the West Coast continues to face challenges, with Oregon and Washington seeing some of the largest increases due to regional infrastructure issues,” said Patrick De Haan, head of petroleum analysis at GasBuddy. Oregon prices surged 21.5 cents and Washington jumped 20.7 cents, the steepest weekly gains in the nation.
The rest of the country is likely to see a different trajectory. “The good news is that the transition to cheaper winter gasoline begins tomorrow across most of the nation, and with improvements underway in the West Coast market, I expect that average gas prices will continue to decline in the weeks ahead in most states–assuming hurricane season remains quiet,” De Haan said.
Oil prices, meanwhile, remain subdued.
As of 12:17 p.m. ET, West Texas Intermediate (WTI) was trading at $63.05 per barrel, up a narrow 0.57% as traders assess Ukrainian damage to Russian oil refineries. At the same time, Brent crude was trading at $67.21, up 0.33% on the day. UBS commodities analyst Giovanni Staunovo noted that prices were supported by smaller expected OPEC+ additions and repeated attacks on Russian energy infrastructure, but capped by swelling U.S. inventories.
The Energy Information Administration (EIA) reported a 3.9-million-barrel build in U.S. crude stocks for the week ending September 5, alongside a 1.5-million-barrel rise in gasoline and 4.7-million-barrel gain in distillates. Refinery utilization climbed to nearly 95%, though implied gasoline demand fell sharply to 8.5 million barrels per day.
With the median U.S. gas price at $2.95, a full 17 cents below the national average, and winter gasoline on the way, analysts see momentum building for another round of price relief in the weeks ahead.
By Tom Kool for Oilprice.com
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