High gasoline prices have clearly taken their toll on American and Canadian motorists in the last few months. How fitting that I finally can deliver two weeks of good news, especially in the month of April (yes, I'm squeezing this post in today so I can make use of that), when gasoline prices have historically continued to climb! However, climbing gasoline prices are not today's story, but rather falling prices- and they continue in North American markets.
The national average took another nice drop in the last seven days, falling 4 cents per gallon in the U.S. and 3c/L for our Canadian friends. I even managed to see a price of $3.28 in Tulsa, Oklahoma this morning at two Sam's Club locations there- a pretty reasonable price given the national average is over 50 cents per gallon higher.
Meanwhile, the cheapest price I can find in the expansive north, otherwise known as Canada- is 108.9c/L this morning in consistently cheaper Edmonton, AB. Canada's average price for gasoline is now a little over 2c/L lower than where it was a year ago, and continues to drop slightly every day.
While gasoline prices are coming down ahead of their peak demand season, diesel prices have suddenly perked up in the latter half of last week- even as peak distillate season winds down- likely driven higher by continued drops in distillate inventories. Wholesale diesel prices spiked in the Great Lakes, meaning truckers and diesel consumers in the area may see diesel prices rise slightly (or perhaps more than slightly). We note that diesel prices don't always change with changes in the wholesale cost as fast as gasoline, so we'll see what this week brings.
In addition to the above, we continue to monitor refinery conditions and production- one refinery could cause a spike in gasoline prices in its respective market should a disruption occur. We're not completely out of the woods yet, but as the deadline for the switch-over to summer gasoline looms tomorrow, potential issues should be winding down.