Key facts
- The national average gasoline price is $4.36 per gallon, down five cents from a week ago.
- This is the first October where the national average has remained above $4 per gallon.
- Gasoline demand rose to 8.76 million barrels per day.
- Gasoline inventories edged up to 204.7 million barrels.
- Crude inventories fell 3.2 million barrels last week to 424.1 million barrels.
- California gasoline averaged $6.34 per gallon on Thursday.
U.S. gasoline prices have seen a slight decrease for the second consecutive week, yet drivers are still facing record-high costs for October. The national average price for gasoline stood at $4.36 per gallon on Thursday, according to AAA, a decrease of about five cents from the previous week. This figure is significantly higher than the $3.12 average from a year ago and marks the first October on record where the national average has consistently stayed above $4 per gallon. The slight dip in prices occurred despite a marginal increase in gasoline demand, which rose to 8.76 million barrels per day from 8.68 million bpd, according to EIA data. Gasoline inventories saw a small uptick, reaching 204.7 million barrels, while refinery gasoline production slipped to 9.34 million bpd from 9.46 million bpd. Oil prices experienced volatility, with WTI settling at $88.28 per barrel on Wednesday after several days in the $80s. Prices surged again on Thursday morning, with WTI and Brent crude each climbing nearly $5 per barrel following reports of explosions in Riyadh. This upward pressure on crude oil keeps gasoline prices vulnerable to further increases, even with relatively steady inventories. While Hurricane Isaias was previously flagged as a potential threat to Gulf Coast oil production and refining, that risk appears to be diminishing. De Haan noted on Thursday that the storm's trajectory is moving away from Louisiana refineries, with reduced rainfall and weaker winds lessening the threat to fuel production. Despite the easing hurricane threat, regional gasoline prices remain elevated. California recorded an average of $6.34 per gallon on Thursday, followed by Hawaii at $5.63 and Washington at $5.46. Even the lowest-priced markets are not offering significant relief, with Ohio leading at $3.71, Indiana at $3.72, and Georgia at $3.84. Last week, crude inventories decreased by 3.2 million barrels, bringing the total to 424.1 million barrels, which is only 1% above the five-year average.