Lundberg Survey – Average Gasoline Prices Increased After 8 Weeks

The Lundberg survey shows that, in the last two weeks, the average cost of regular gas in the U.S. gained 0.84 cents per gallon, pushing the price to $3.5447 per gallon, a first time increase in eight weeks.

The poll covers the period that ended on the 3rd of May, and the information is based on data obtained from almost 2,500 gasoline stations throughout the country. According to the survey, the average gasoline price has dropped 25.03 cents from a record high posted last February 22. Moreover, it has decreased 30.05 cents from the same period last year.

The rise reflected in the current gasoline prices is attributed to several factors, such as the increasing crude price per barrel, more costly summer blend gasoline, higher prices for ethanol and an anticipated increase in demand as soon as summer begins, said Trilby Lundberg, the survey’s president and publisher.

Lundberg said that all the combined factors signify that there will be slight to moderate increases in gasoline prices at the consumer level. She added that the expected rises will not be shocking.

On the NYMEX, gasoline futures prices gained 5.3 cents, or 1.9 percent, to $2.8254 per gallon during the two weeks that ended on the 3rd of May. For this year, futures have increased 0.5 percent.

U.S. gasoline inventories shed 1.82 million barrels during the week that ended on the 26th of April to 216 million, the lowest rate since the 30th of November, according to the data of the Energy Information Administration.

The demand for gasoline, based on deliveries to wholesalers, was at its lowest level for the season in the last five years.

WTI, the U.S. benchmark crude, gained 8.6 percent, or $7.60, to $95.61 per barrel during the two weeks to the 3rd of May. The current oil price reflects a 4.1 rise for the year.

By: Chris Termeer