-April 27,2023-
On the futures market this week gasoline futures extended declines below $2.6 per gallon, hovering around their lowest level since March 24th.Wholesale futures prices are nearly 40 cents lower in the past month although motorists in California are not feeling much relief.
Nationwide the EIA says gasoline demand the third week of April is down to 8.7 million gal a day from 9 a few weeks ago.
Gasoline futures are falling right now while they headed much higher this time last year( see chart below)
AAA says lower oil prices is causing pump prices to fall, with the national average for a gallon of regular gasoline dropping a nickel since last week.In California prices are down 2 cents in a week -big whoop! As the say – California gas prices take the elevator up but take the stairs when they have to go down.
“For the first time in several weeks, the national average price of gasoline has seen a decline, and while the fall was quite small, the bigger news may be that we may have seen a short-term peak for the price of gasoline,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan said gas prices typically peak in May and June, but the oil market is weakening, and we may have already seen the summer peak in prices. “While it’s possible we could go higher later this summer should a major hurricane target sensitive infrastructure, it appears the odds that the national average will miss the $4 per gallon mark are rising. It’s certainly looking optimistic for motorists.”