Gasoline and diesel prices slipped in the last week as refineries recover from Hurricane Ida. However, Tropical Storm Nicholas threatens refineries in the Houston area, and could pause further declines this week.
The weekly average gas price fell 1.9 cents per gallon to $3.15 and the average diesel price slipped less than a half-cent to $3.29 per gallon. Gas Buddy analyst Patrick De Haan states, “While Nicholas would appear to be a minor storm, we could see a deluge of water – the same issue that caused some significant damage in Ida’s wake to refineries in Louisiana.”
Meanwhile, gasoline demand continues to decline for the fourth week in a row as the summer driving season ends. Nationally, weekly gasoline demand fell 1.8 percent from the prior week.
Crude oil prices have seen upward as some oil production in the Gulf of Mexico remains offline following Hurricane Ida, and oil inventories are down six percent from the five-year seasonal average.