National Average Falls, But Rebounding Gas Demand and Crude Prices May Change Its Course

AAA Gas Prices

Today’s AAA National Average $4.278

Price as of 7/28/22

July 28,2022

Since Monday, the national average for a gallon of regular gasoline has fallen eight cents to $4.27. According to new data from the Energy Information Administration (EIA), gas demand increased from 8.52 million b/d to 9.25 million b/d last week. The estimated rate is 80,000 b/d lower than last year, but it could pressure pump prices and slow price decreases if the trend holds. Additionally, total domestic gasoline stocks decreased by 3.3 million bbl to 225.1 million bbl, signaling that higher demand reduced inventory last week. 

At the close of Wednesday’s formal trading session, WTI increased by $2.28 to settle at $97.26. Crude prices have increased this week as market concerns about weakening demand this summer have eased after the EIA reported that total domestic crude stocks decreased by 4.5 million bbl to 422.1 million bbl last week, 13.5 million bbl lower than the storage level at the end of July 2021. 

Largest Weekly Decreases

  • Since last Thursday, these 10 states have seen the largest decreases in their averages: Kansas (−26 cents), Oklahoma (−25 cents), Nebraska (−25 cents), Iowa (−23 cents), Ohio (−23 cents), Wyoming (−21 cents), Indiana (−21 cents), Colorado (−21 cents), Michigan (−21 cents) and South Dakota (−20 cents).