The U.S. national average has dropped for seven straight days, but unless there's a situation that develops quickly, the decrease may be short lived. Typically, gasoline prices decline in the autumn as gasoline demand dwindles and that drop sparks increases in supply. This year, it seems that between refinery problems and "planned maintenance" we just haven't seen an increase in supply like we normally do.
Oil and wholesale gasoline prices fell last week, but after the weekly EIA report Wednesday, gasoline futures rose while oil prices declined, leading to hefty refinery margins as crude oil prices fell and traders sent wholesale gasoline prices higher because of various supply related issues.
The increase in wholesale prices late last week may begin to push the national average higher again, unless a considerable increase in gasoline inventories occurs in this week's EIA report.
The national average today stands nearly 10% higher than this date last year, and one must begin to wonder how the high seasonal prices could impact the U.S. holiday season, fast approaching.
Either way, as wholesale prices have risen in the last week, the national average too, may soon swing to the upside if there isn't a notable gain in Wednesday's EIA report. Stay tuned, we'll be covering it on Wednesday.