US retail gasoline prices may have hit spring peak

06 May 2014 16:15 Source:ICIS News

HOUSTON (ICIS)--The national average US price for gasoline at the pump is $3.67/gal, 2 cents/gal less week on week but 9 cents/gal higher compared to one month ago, the AAA said in its Fuel Gauge report made available on Tuesday.

“Gasoline prices may have reached a springtime peak of $3.70/gal…  though it is too early to know for certain,” said AAA’s Michael Green.

While prices are declining, at the same time last year, prices were rising from a spring low.

The weaker retail gasoline prices are stemming from a build in domestic crude inventories, particularly in the US Gulf coast, and the US Energy Information Administration (EIA) showing stockpiles at an all-time high recently.

According to AAA, this increase in supply is partly due to refineries coming back online, following the completion of maintenance projects scheduled in anticipation of the 1 May deadline for refineries to produce summer-blend gasoline, and is also attributed to output outpacing demand.

Across the US, 32 states had declines in retail gasoline prices over the past week, with the largest drops in Indiana (-13 cents), Michigan and Ohio (-11 cents each), and Illinois (-7 cents).

AAA chart

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By Anna Matherne