EDITOR’S NOTE: As part of a new partnership with DTN, Convenience Store Decisions will be providing weekly rack prices from DTN along with exclusive trends and analysis from Refined Fuels Editor Brian Milne.
By Brian L. Milne, Refined Fuels Editor, DTN
Sliding selling prices for gasoline at wholesale terminals in major markets across the United States bodes well for summer travelers on American roads, with the decrease in costs for retail gasoline outlets expected to continue the steady decline in pump prices for the week of August 11.
The average price for regular grade gasoline, all formulations, at retail outlets across the U.S. was last pegged at $3.88 gal, marking a decline from the $4.11 gal record high average reached in early July. Weakening demand primarily due to high gasoline prices this summer has prompted conservation to help pressure prices at the pump. While down 5.6 percent since mid-July, retail gasoline are however still more than $1 higher than a year-ago at this time.
However, there are several signals in the wholesale market suggesting that the steady retreat in retail gasoline prices might stall and even turn higher as we head towards the Labor Day holiday. The wholesale markets appear to have found short-term pricing support to halt their slide that could potentially reverse some of the mid-July to early August losses, namely in California and potentially in the Chicago metro area.
About the Author:
Brian L. Milne is the Refined Fuels Editor for DTN–a leading business-to-business provider of real-time commodity information services. Milne has been focused on the energy industry for nearly 14 years as an analyst, journalist and editor. He can be reached at [email protected].