• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 5 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 2 hours Would bashing China solve all the problems of the United States
  • 7 mins Model 3 cheaper to buy than BMW 3 series.
  • 4 hours Thugs in Trumpistan
  • 8 hours Pompeo's Hong Kong
  • 4 mins China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 19 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 13 hours China’s Oil Thirst Draws an Armada of Tankers
  • 8 hours Income report showing potential future spending and economic growth
  • 1 day China to Impose Dictatorship on Hong Kong
  • 1 hour Coronavirus hype biggest political hoax in history
  • 9 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 10 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 2 days 60 mph electric mopeds
Has Natural Gas Hit Rock Bottom?

Has Natural Gas Hit Rock Bottom?

Natural gas prices fell below…

China Dumps LNG Amid Massive Glut In Asia

China Dumps LNG Amid Massive Glut In Asia

PetroChina, one of the largest…

US Gas Prices Slump Despite Soaring Demand

US Gas Prices Slump Despite Soaring Demand

The switch from coal to…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

AAA: Drivers Should Soon See Relief At The Pump

As U.S. gasoline production increases in anticipation of the summer driving season, the American Automobile Association said it is expecting prices at the pump to drop by Memorial Day, May 26.

The AAA reported a national average price on May 5 of $3.67 -- about 3 cents lower than what the motor club said was a seasonal high, on April 28.

Michael Green, an AAA spokesman, told Oilprice.com that the national average price for a gallon of regular unleaded gasoline has declined for nearly a week straight, the longest streak since mid-January. Before last week's high-water mark, the average price had increased 76 out of 80 days.

"It seemed that drivers couldn’t catch a break with gas prices rising nearly every day since February," he said. "Last week’s high of $3.70 per gallon was the most expensive in more than 13 months, and nearly nine percent of the [filling] stations [nationwide] were selling gas for more than $4 per gallon."

Gasoline prices in April increased in part because of seasonal refinery maintenance and pressure on crude oil prices from the closure of export terminals in Libya and the ongoing crisis in Ukraine. Near the end of April, the U.S. Energy Information Administration (EIA) said more U.S. refiners were selling gasoline overseas to take advantage of higher prices.

EIA said gasoline production declined for the week ending April 25. And while motor gasoline inventories increased by 1.6 million barrels for that week, the administration said that level was in the lower half of what it considered an average range.

Related Article: AAA: Shale Boom Keeps High Gas Prices From Going Higher

Crude oil production of 8.3 million barrels per day for the week ending April 25 was marginally lower as well, though all of the declines came from Alaska.

The AAA’s Green said U.S. refineries should start to increase their production ahead of Memorial Day, a holiday that's considered the start of the summer driving season, when demand rises. The increase in production for May should outpace consumer demand and push prices at the pump even lower than what they are today.

"Most drivers should pay at least a little less for gas by Memorial Day weekend," he said.

Gasoline stockpiles are already rising, with EIA reporting 1.56 million barrels on hand and the first weekly increase since the middle of February.

EIA said it expects May prices to average around $3.66 per gallon and drop to $3.46 by September. Barring any major escalation in the Ukrainian crisis or unscheduled refinery problems, Green said that while prices are a bit higher now, they've likely reached their seasonal peak.

By Daniel J. Graber of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • john popp on May 06 2014 said:
    I think it's all bull. I will never believe all the crap they try to tell us on why they over charge !! They are not fooling all of us .

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News