Fuel Demand Struggling as COVID-19 Cases Rise

After falling for the first time in ten weeks, the national average price of gasoline has rebounded in the last week, rising 1.1 cents per gallon to $2.19. The national average price of diesel has decreased 0.2 cents and stands at $2.43 per gallon over the same period. GasBuddy’s Patrick De Haan says demand is struggling as coronavirus cases continue to increase in several states. De Haan says he expects gas prices to move sideways with the lack of a clear national trend, as we “remain in a COVID-19 holding pattern.” Crude oil prices continue to hold near recent highs. But overall, as demand rebounds have stalled, so too has the rally in oil prices. In addition, OPEC’s strongest production cuts are to expire at the end of July, leading to more oil production, responding to the recovery in global oil demand. Last week saw a notable 5.7-million-barrel rise in U.S. crude oil inventories, which now stand 17.5 percent above year-ago levels.