U.S. Gasoline Demand Plummets Pushing National Average Cheaper

Wisconsin $1.43; 16 cent decrease

06 April 2020

MADISON, Wis., (April 6, 2020) – Today’s national gas price average is $1.92. That is nine cents cheaper than last Monday, 48 cents less than a month ago and 81 cents less expensive than a year ago. On the week, pump prices continued to push less expensive with gasoline demand registering at its lowest point since 1993. The latest Energy Information Administration (EIA) weekly report puts demand at 6.7 million b/d – a nearly 30 year low – and it’s likely to push lower as Americans are urged to stay at home at least until the beginning of May.

“This week, market analysts are watching crude oil prices, which started to increase at the end of last week,” said Nick Jarmusz, Director of Public Affairs for AAA – The Auto Club Group. “However, given the low demand readings, increases in crude aren’t likely to have an impact on gas prices in the near-term.”

In addition to crude oil, market analysts are also watching refinery rates. The U.S. refinery utilization average is down to 82%, a low not seen since September 2017. Given the drop in crude oil and gasoline demand, which is expected to push even lower, refineries are reducing production in hopes this could help to balance the amount of gasoline supply in the country.

 

Monday

Sunday

Week Ago

Month Ago

One Year Ago

National

$1.929

$1.926

$2.404

$2.404

$2.735

Wisconsin

$1.436

$1.452

$1.590

$2.292

$2.743

Appleton

$1.179

$1.187

$1.325

$2.232

$2.662

Eau Claire

$1.417

$1.418

$1.518

$2.364

$2.836

Green Bay

$1.264

$1.284

$1.464

$2.300

$2.720

Janesville-Beloit

$1.259

$1.273

$1.393

$2.207

$2.662

La Crosse

$1.345

$1.347

$1.350

$2.335

$2.786

Madison

$1.424

$1.434

$1.580

$2.241

$2.708

Milwaukee

$1.450

$1.467

$1.594

$2.238

$2.789

Wausau

$1.664

$1.681

$1.795

$2.346

$2.717

Click here to view current gasoline price averages

Oil Market Dynamics

 

At the end of Friday’s formal trading session, WTI increased by $3.02 to settle at $28.34 per barrel. Domestic crude prices increased at the end of last week, following news that the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, planned to hold an emergency meeting today to discuss potential crude production cuts amid the global oversupply caused by COVID-19. However, OPEC and its partners have moved the meeting to Thursday, April 9. Crude prices are likely to remain volatile this week until the meeting, where the market will be looking to see if production cuts are enacted and if they are drastic enough to curb the growing oversupply of crude in the global market.

Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

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