“The national average for a gallon of regular is down about a penny to $3.19. There remains an abundance of crude oil supply which is outweighing demand. The seasonal transition to winter-blend gasoline – which is cheaper to produce – is also beginning. While the national average has been relatively stable, drivers in the Pacific Northwest are feeling pain at the pump. Gas prices in the area have jumped more than 20 cents in the past week due to the shutdown of a major pipeline that transports fuel from Washington to Oregon. The pipeline is reportedly expected to resume operations in a few days,” said AAA.**

Gasoline Prices
• Today’s National Average: $3.194
• One Week Ago: $3.201
• One Month Ago: $3.138
• One Year Ago: $3.253

According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 9.11 million b/d last week to 8.50 million. Total domestic gasoline supply increased from 218.5 million barrels to 220 million. Gasoline production decreased last week, averaging 9.6 million barrels per day.

Oil Market Forces at Work

At the close of Wednesday’s formal trading session, WTI rose $1.04 to settle at $63.67 a barrel. The EIA reports crude oil inventories increased by 3.9 million barrels from the previous week. At 424.6 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.