Gasoline prices across the Northeast are edging lower thanks to a pre-Memorial Day dip in demand, a surge in supply and crude oil prices continuing to hover near multi-year lows of around $60 a barrel, according to AAA Northeast.
According to a AAA news release, demand for gasoline last week retreated to 8.7 million barrels a day — a decline of more than 300,000 barrels a day from the previous week, according to the Energy Information Administration.
Meanwhile, domestic refiners continue to accelerate production ahead of the summer driving season as output and refinery capacity utilization — a measure of how much refinery capacity is being used to produce gasoline and other refined products — nudged slightly higher.
The result was an increase of national gasoline inventories of 200,000 barrels, the EIA reported. Northeast inventories saw a much bigger build, growing by 1.8 million barrels due in part to Phillips 66 essentially completing seasonal maintenance at its Bayway refinery in Linden, New Jersey, a key source of motor fuels for the region.
With Northeast inventories climbing to 59.17 million barrels, supplies are now once again higher than they were last year, when 57.3 million barrels were in storage with two weeks until Memorial Day. It’s also higher than the 59.01 million barrel 5-year average.
Crude oil prices ended last week about 15% lower than at the start of the year, primarily due to global trade concerns and a decision from OPEC+ member nations to increase production in June by roughly 410,000 barrels a day.
The average gas price in New York is down a penny from last week ($3.10), averaging $3.09 per gallon. Monday’s price was two cents lower than a month ago ($3.11) and 63 cents lower than a year ago ($3.72). New York’s average gas price was four cents lower than the national average.
“With two weeks until Memorial Day, drivers are seeing dramatically lower gasoline prices compared to last year,” said Patti Artessa, director of public affairs outreach for AAA Northeast. “With AAA forecasting a record number of travelers to take to the roads for the holiday this year, road trippers’ wallets will benefit as they spend less at the pumps.”
AAA Northeast’s May 12 survey of fuel prices found the current national average down three cents from last week ($3.16), averaging $3.13 gallon. Monday’s national average price is six cents lower than a month ago ($3.19) and 48 cents lower than this day last year ($3.61).
Mississippi and Oklahoma have the lowest prices in the nation, at $2.63 and $2.68, respectively. California and Hawaii hold the highest prices in the nation this week at $4.89 and $4.49, respectively. New York holds the 17th place on the list of highest gas prices in the nation.