June 16 (UPI) — A lull in demand following the long Memorial Day holiday weekend and range-bound crude oil prices are factors keeping a lid on prices at the pump, data show.
Travel club AAA put the national average retail price at $3.58 for a gallon of regular unleaded on Friday, unchanged from week-ago levels and only 5 cents per gallon higher than this time last month.
The price of crude oil, which accounts for the bulk of what consumers see at the pump, has been equally stable. West Texas Intermediate, the U.S. benchmark for the price of crude oil, was trading at $80 per barrel in late April, but has been stuck in the mid-$70 range ever since.
Andrew Gross, a spokesperson for AAA, said demand may have leveled off a bit after the long Memorial Day holiday weekend. Federal data this week showed gas demand faltered somewhat from week-ago levels.
“Drivers are benefiting financially, with 20 gallons of gas costing nearly $30 less than last year,” he added. “And with the cost for oil low, drivers will find pump prices that are flat or drifting slightly lower for now.”
The national average retail price was $5.00 per gallon at this time last year. Prices last year were supported in large part by sanctions imposed on Russia, a major crude oil producer, for its invasion of Ukraine.
Markets have since adjusted to the loss of Russian oil, with support from the likes of the United States and Norway.
A forecast from the Energy Information Administration, the statistical arm of the Energy Department, puts gasoline demand above year-ago levels, but not by much. EIA said gasoline consumption grows by 110,000 barrels per day, or just 1%, relative to 2022.
EIA forecasts a $3.39 average gas price this year, compared with $3.97 for 2022.