Oil pumps in storage in Texas, US. Credit: Jim Parkin via Getty Images.

The US Energy Information Administration (EIA) has stated that rising gasoline inventories, subdued demand and oil prices below their recent highs are contributing to a fall in gasoline prices. 

The average cost of gasoline in the US has dropped by $0.19/gal since reaching its peak for 2024 on 22 April. As of 1 July, it stands at $3.48/gal, $0.05 lower than the price at the same time last year, the EIA said.  

On 19 April, the US had 226.7 million barrels (mbbl) of gasoline in stock, 8.5mbbl lower than the average for the past five years, the data revealed. 

Data available from 19 April to 21 June showed that the gasoline inventory in the US rose by 7.1mbbl to reach 233.9mbbl, nearly matching the average for the previous five years. This increase was mainly due to unusually large inventory growth on the East Coast, where stocks grew by 4.1mbbl during the same period. 

The energy body said: “Gasoline imports into the East Coast hit a 2024 low of 381,000 barrels per day (bpd) the week of 5 April but increased after that and averaged 630,000bpd the week of 21 June, a 65% jump.  

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“Data from Vortexa Analytics indicate that most of this increase is driven by increased gasoline imports from Europe,” it added.  

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In early April, rising tensions in the Middle East and concerns over vessels transiting through the Red Sea affected crude oil prices, along with production cuts by OPEC+. 

Despite these developments, crude oil prices remain lower than the peak levels observed in April, with Brent standing at $88 per barrel on 1 July.  

In January, EIA estimates indicated that the average yearly crude oil prices in 2024–25 would be the same as in 2023. It also stated that there would be a relatively even balance between global supplies and demand for petroleum liquids over the next two years.  

In May, the body revised its earlier forecast for global oil demand in 2024, indicating that it is expecting growth to slow. Additionally, the agency predicts that global oil output will expand faster than previously estimated, leading to a more balanced market.