Gas prices hit another national record of $4.59 per gallon Wednesday as Americans filled up ahead of Memorial Day weekend, the official start of the summer driving season. At the same time, oil prices pushed higher as the country’s stockpiles drain.
The U.S. Energy Information Administration said Wednesday that commercial crude oil inventory is down 1 million barrels from the week before and is 14% below the 5-year average for this time of year. Brent crude was trading over $113 per barrel midday Wednesday, while WTI crude was around $110 per barrel.
The Energy Department reported motor gasoline inventories are also tight, down another 0.5 million barrels last week, just as more Americans are hitting the road.
Travel over Memorial Day Weekend is expected to be the busiest since the COVID-19 pandemic as drivers endure higher prices to get out of dodge. The demand is putting immense pressure on depleting stocks that are at the lowest seasonal levels since 2014, according to a Commerzbank analyst.
In some parts of California, gas stations are charging more than the federal minimum wage of $7.25, shocking drivers who pull up. Statewide, the average price of regular unleaded is over $6 per gallon, the worst in the nation, according to AAA. The cheapest average gas price is in Oklahoma, at $4.07.
It's only going to get worse… #california #gas #prices pic.twitter.com/1ZXVJJIBXU
— caliblackspeaks (@caliblackspeaks) May 25, 2022