The trend for prices at the pump is lower, even as a surprise drop in gasoline supplies sent oil and gasoline futures higher this week.
The government reported that U.S. oil production rose to 7.326 million barrels per day, its highest level since March, 1992.
The four-week average for gasoline demand is down 1.7 percent from the same period a year ago. That I think is a concern. When you add refining capacity, you have the expectation that you’re going to see at least stable prices. On a four-week basis, last week’s number was the lowest since April 1997.
Gasoline demand in the week rose to 8.82 million barrels a day, but the four-week average is 8.53 million barrels, the lowest since 2003.