U.S. gasoline prices are notably lower compared to last year as the Labor Day weekend approaches, marking the end of the summer driving season, according to the U.S. Energy Information Administration (EIA). On August 26, the average retail price for regular gasoline was $3.31 per gallon, reflecting a 13% decrease from the previous year.
The EIA highlights that gasoline demand is higher this year leading into Labor Day, with recent data showing a daily consumption of 9.3 million barrels, the highest for August since 2022. However, the EIA anticipates a decline in demand post-summer, which is expected to keep prices lower in the coming months.
Factors contributing to the current lower prices include sluggish growth in global and U.S. petroleum product demand, increased crude oil production from non-OPEC+ countries, and a decelerating Chinese economy. Additionally, a series of refinery outages in the U.S. Midwest led to regional price spikes exceeding 20% above the national average between July 22 and August 5.
Currently, U.S. gasoline inventories stand at 221 million barrels, approximately 3% higher than the previous year. Brent crude oil prices, as of August 26, 2024, are down 4% from the same time last year, with crude prices contributing 55% to gasoline costs as of June, according to EIA estimates.
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