Fuel Prices Decreasing on Limited Demand Recovery

Fuel prices are moving lower as the summer driving season comes to an end. The national average price of gasoline fell 1.1 cents per gallon over the last week to $2.16, according to GasBuddy. The national average price of diesel has decreased one cent and stands at $2.41 per gallon over the same period. Patrick De Haan of GasBuddy says, “as summer begins to fade, demand recovery may be limited,” adding, “demand weakens into the autumn, and as the coronavirus situation keeps more kids home and more parents from work, we may see a drop in gas prices as we progress through fall.” Crude oil prices have remained stable over the last six weeks. Some optimism has been returning to the oil patch in the last week as the number of new coronavirus cases in the world’s largest oil consumer have been slowing down, providing a catalyst as hopes rise for U.S. demand to continue recovery, and crude oil inventories fell 7.4 million barrels.