Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

U.S. gasoline prices fall to pre-Ukraine invasion levels

Commodities Aug 31, 2022 12:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Gasoline prices are displayed as fuel costs continues to climb close to record setting territory in Encinitas, California, U.S., May 9, 2022. REUTERS/Mike Blake
 
CL
+0.08%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NYF
-0.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BP
+0.58%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Arathy Somasekhar

HOUSTON (Reuters) -U.S. wholesale gasoline prices fell to their lowest levels since before Russia's invasion of Ukraine on Wednesday, suggesting motorists in the world's largest energy consumer will see lower pump prices in coming weeks.

U.S. gasoline futures fell as low as $2.5899 per gallon on Wednesday, the lowest since Feb. 18, just before Moscow invaded Ukraine, setting off a series of sanctions from the United States and its allies that boosted prices across the energy markets to multi-year highs.

Energy costs have been the primary driver of global inflation, with retail gasoline prices hitting an all-time record in the United States at more than $5 a gallon in mid-June.

Lack of spare refining capacity pushed costs for refined products higher, but headed into winter, gasoline prices have started to retreat as demand dips.

U.S. stocks of gasoline fell 1.17 million barrels, to 214.48 million, their lowest since November, according to data released on Wednesday by the Energy Information Administration.

"We've probably seen the highest refinery utilization rate and that's going to keep sliding away as summer driving season ends and refiners head into maintenance season," said Bob Yawger, director of energy futures at Mizuho Securities.

U.S. demand ticked higher in the most recent week, with product supplied climbing to 8.59 million bpd, though Yawger predicted gasoline demand likely will trend down.

Fears of a global recession and record amount of emergency oil sales from national reserves have helped cool crude oil futures as well as gasoline markets.

Wholesale gasoline futures, known as reformulated blendstock, peaked at $4.31 a gallon in early June. Retail U.S. gasoline prices hit a record of $5.016 two weeks later, according to American Automobile Association data.

Since then, the wholesale price has dropped by 37%, while retail prices are down 23%. Prices are down in every state, with the Midwest seeing some of the biggest declines.

Heating oil futures have remained elevated ahead of increased use of that fuel in the cold winter months.

BP (NYSE:BP)'s Whiting, Indiana refinery is restarting after a few days offline following an emergency. Kilduff said that news also helped lower wholesale gasoline prices.

U.S. gasoline prices fall to pre-Ukraine invasion levels
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Count da Money
CountdaMoney Aug 31, 2022 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
🤣🤣🤣 nope
Casador Del Oso
Casador Del Oso Aug 30, 2022 6:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So what happens if all this good news results in OPEC+ production cuts?
Gary Piccone
Gary Piccone Aug 30, 2022 4:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Demand worsen? Go across any bridge in NYC, go up and down the NYS Thruway. No one cares about high gas prices
Arvind Ganotra
Arvind Ganotra Aug 30, 2022 4:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Situation will change after Labor Day weekend. Moreover most of us are done with post pandemic travel and will looking to save now as winter is coming
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email