U.S. gasoline prices have fallen for a second straight week, but drivers are still paying more at the pump than they ever have in October.
AAA put the national average at $4.36 per gallon Thursday, down about five cents from a week ago. A year ago, gasoline averaged $3.12. This is the first October in which the national average has remained above $4 per gallon.
The drop came despite a small increase in gasoline demand. EIA data showed demand rising to 8.76 million barrels per day from 8.68 million bpd, while gasoline inventories edged up to 204.7 million barrels. Refinery gasoline production slipped to 9.34 million bpd from 9.46 million bpd.
WTI settled Wednesday at $88.28 per barrel after spending several days back in the $80s. Oil prices jumped again Thursday morning after reports of explosions in Riyadh, with WTI climbing nearly $5 per barrel and Brent nearly $5.
That keeps gasoline vulnerable to another run higher even with inventories holding relatively steady.
AAA had also flagged Hurricane Isaias as a potential threat to Gulf Coast oil production and refining. That risk appears to be easing. De Haan said Thursday that the storm is tracking farther away from Louisiana refineries, with lower rainfall expectations and weaker winds reducing the threat to fuel production.
But regional prices remain ugly.
California gasoline averaged $6.34 per gallon Thursday, followed by Hawaii at $5.63 and Washington at $5.46. Even the cheapest markets are no bargain. Ohio led the low end at $3.71, with Indiana at $3.72 and Georgia at $3.84.
Crude inventories fell another 3.2 million barrels last week to 424.1 million barrels, leaving stocks just 1% above the five-year average.
By Julianne Geiger for Oilprice.com
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