Welcome to the end of Memorial Day, a week traditionally filled with fun, food, family- and driving. If you are one of the lucky ones to come out and about this weekend, you will see at the pump that gas prices are in the low 20s.
Going into the holiday weekend, the national average for gas prices, according to AAA, is just $ 1.94. per gallon- $ .90 below last year’s level.
The last time gas prices were under $ 2 per gallon heading into Memorial Day weekend was in 2003, when drivers paid $ 1.50 per gallon.
But AAA does not expect a fast weekend trip.
“Despite low gas prices, AAA expects this year̵7;s holiday will likely set a record for volume of travel,” AAA spokeswoman Jeanette Casselano said. But AAA declined this year – for the first time in 20 years, to publish a trip for the weekend due to pandemics, making it difficult to study the basic economic data needed to reach the conclusions.
A forecast provided by AAA is that gas prices will pick up in the coming weeks as more states lift stay-at-home orders.
The EIA reported that fuel demand hit 6.79 million bpd last week. This compares to 9.429 million bpd a year ago.
However, AAA hopes there will be some “short-lived” fueling demand for travelers over the weekend.
But the lack of a forecast for fuel demand for the holiday suggests that it is at least possible that we may see a surprising up-tick in demand by enthusiastic travelers over the weekend. It is doomed, however, not only by fears of the virus, but also by the terrible financial practices that some have found themselves in because of the closures.
GasBuddy says this, too, is having difficulty making forecasts. According to GasBuddy, forecasting fuel prices this summer “is the most challenging of any year in GasBuddy’s 20-year history.” GasBuddy’s summer forecast sees fuel prices between $ 2.15- $ 2.35 for Independence Day.
By Julianne Geiger for Oilprice.com
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