The national average price for a gallon of regular gasoline fell to $4.24 this week. This marked the second consecutive weekly decline as crude oil prices remained below $100 per barrel and gasoline demand softened, according to data released by the American Automobile Association (AAA).
AAA reported that the national average dropped 18 cents from the previous week’s $4.43 per gallon. Motorists are seeing some relief at the pump as the summer travel season begins. However, uncertainty surrounding oil shipments through the Strait of Hormuz continues to cloud the outlook for fuel prices.
“Pump prices are cooling off as the price of crude oil remains below $100 per barrel,” AAA said in a June 4 statement. “Drivers will take all the relief they can get as they embark on summer road trips. But uncertainty lingers over when the Strait of Hormuz will fully reopen and resume traffic.”
According to AAA, gasoline demand fell from 9.25 million barrels per day to 8.59 million barrels per day during the most recent reporting week. At the same time, domestic gasoline supplies increased from 211.6 million barrels to 215 million barrels. Gasoline production averaged 9.4 million barrels per day.
Oil prices have also moderated in recent weeks. West Texas Intermediate crude settled at $96.02 per barrel on Wednesday. U.S. crude inventories fell by 8 million barrels from the previous week. Total inventories stood at 433.7 million barrels. That figure was about 3 percent below the five-year average for this time of year.
Despite the recent decline in fuel prices, concerns remain about potential disruptions to global energy supplies. The Strait of Hormuz is a key shipping route for global oil exports. It has faced ongoing disruptions tied to the conflict involving Iran. Analysts warn that any escalation could quickly push oil and gasoline prices higher again.
AAA data showed significant differences in fuel prices across the country. California had the highest average gasoline price at $5.97 per gallon. Washington followed at $5.66 and Hawaii at $5.62. Alaska, Oregon, and Nevada also recorded statewide averages above $5 per gallon.
Meanwhile, the lowest average prices were found in Indiana at $3.55 per gallon. Texas followed at $3.72 and Oklahoma at $3.74. Louisiana, South Carolina, Mississippi, Tennessee, Georgia, Kansas, and North Carolina rounded out the list of the least expensive gasoline markets.
The national average for public electric vehicle charging remained unchanged from the previous week at 41 cents per kilowatt-hour, according to AAA.
Fuel prices have eased from recent highs. However, energy analysts continue to watch developments in the Middle East and the Strait of Hormuz. Shipping disruptions there could influence oil markets and affect gasoline prices during the busy summer driving season.