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Spring weather may be weeks away in much of the country, but the seasonal rise in gas prices is underway. The national average for a gallon of regular gasoline went up by more than 5 cents this past week to $2.98.
Refineries are beginning the process of producing summer-blend gasoline which contains pricier additives to help reduce evaporation during warmer months. Gas demand is also expected to increase next month as spring break season kicks off and more drivers take road trips.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 8.74 million b/d to 8.73 million.
Total domestic gasoline supply decreased from 255.8 million barrels to 254.8 million. Gasoline production decreased last week, averaging 9.2 million barrels per day.
At the close of Wednesday’s formal trading session, WTI fell 21 cents to settle at $65.42 a barrel. The EIA reports crude oil inventories increased by 16 million barrels from the previous week. At 435.8 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.