API says US gasoline prices decline for eighth straight week

By the OGJ Online Staff

HOUSTON -- The American Petroleum Institute reports that average prices for regular gasoline in the US fell to $1.182/gal (including taxes) on the eve of the Thanksgiving holiday travel period.

Prices fell for the eighth consecutive week. The $1.182 average on Nov. 9 was down more than 2¢ from the previous week and 34¢ less than the same time a year ago.

API noted gasoline prices generally track those of crude (see chart) and oil prices are subject to worldwide supply and demand conditions. It said during the most recent week, crude oil closed trading at $22.22/bbl, considerably lower than prices as high as $32 earlier this year.

It said, "So far this year, the US has imported nearly 60% of its petroleum needs and is dependent upon world oil markets. Since crude oil costs represent the largest component of the price of gasoline, fluctuations in crude oil prices are the most important cause of gasoline price swings over the long term."

API said that as of the week ending Nov. 9, year-to-date total inputs into the nation's 152 refineries had increased almost 1% from last year. It said production of distillate fuels (heating oil and diesel fuel) was almost 3% higher than at the same time a year ago.

"Refineries nationwide have run at 92.8% of capacity year-to-date, higher than during the same period last year. In the most recent week, capacity utilization averaged 90.6%, level with the previous week.

"Though the peak driving season has passed, gasoline output remained strong at over 8.2 million b/d as refiners continued to supply transportation fuels to U.S. consumers. Furthermore, production of distillate fuels -- including heating oil -- has frequently run at record levels in recent weeks.

"Gasoline inventories, including reformulated gasoline as well as conventional, closed the week significantly above both their average for this time of year and their levels of the same week a year ago."