Consultants Are Describing Stock as Oversupplied
A bigger-than-usual stock and demand that’s trailing expectations are contributing to falling gasoline costs within the Northeast, in response to AAA.
The automotive group reported Monday that the $3.01 per gallon common gasoline value in Massachusetts this week was down 2 cents from final week and 17 cents per gallon decrease than this time a yr in the past. AAA’s survey discovered gasoline averaging $3.09 per gallon nationwide.
At 67 million barrels, the Northeast gasoline provide is 500,000 barrels greater than at the moment in 2024 and properly above the five-year common of 64.8 million barrels, AAA stated, citing Power Info Administration information. Fuel costs usually rise at the moment of yr, however AAA stated rising demand for gasoline final week climbed to a lesser diploma than analysts anticipated.
“With lower than a month till the official switchover to summer time blended gasoline, many market analysts are more and more describing the stock state of affairs as oversupplied — particularly since demand continues to languish and issues about future financial headwinds are driving oil costs decrease,” AAA stated.
AAA spokesperson Mark Schieldrop stated the U.S. produces 13 to 14 million barrels of oil per day, and imports 3.5 million to 4 million barrels of oil per day from Canada that’s despatched on to refineries through pipeline. Whereas tariffs can play a task in costs will increase, he stated Canada can’t simply ship and promote its oil elsewhere and market observers consider the dynamic “will compel Canadian producers to soak up among the price will increase and promote product at a reduction.”
“Costs on the pump throughout Massachusetts and the remainder of the Northeast will improve in April because of the switchover to summer time mix gasoline, which is costlier to provide,” Schieldrop stated. “Nonetheless, when costs regulate after the swap, it is going to be troublesome to establish how a lot of the rise is because of tariffs, oil costs, demand vs. provide, and so forth. For sure, quite a bit goes into the value for a gallon of gasoline past tariffs.”
