Gas Update: Traffic is Back...

DENVER (April 26, 2021) - If you had a sneaking suspicion that traffic is back, you're right: U.S. gasoline demand recorded its second-highest measurement since mid-March 2020, indicating that motorists are filling up more often. In fact, the latest demand reading is the highest spring number released by the Energy Information (EIA) in two years, and is only about three percent below the same week in 2019. 

And, while Colorado gas prices are up by $1.20 per gallon over this time last year, they've increased only a penny on the week and five cents on the month - pointing to the stabilization long anticipated as supply caught up to demand.

"As the vaccine roll out continues, consumer confidence continues to surge. That means more folks are traveling - and some are returning to work, so they're commuting more," said Cassie Tanner, deputy regional director of public affairs for AAA. "Sure, we're paying more at the pump than we were a year ago, but more expensive gas prices tend to reflect a rebounding domestic economy - something we've all been hoping for since last year."

National Trendlines
Both demand and supply have steadily increased in the past five weeks, although weekly gasoline supply builds are lagging. On the week, supply saw a 100,000 barrel build to 234 million barrels, most likely due to high consumer demand. 

The jump in demand to 9.1 million barrels a day, combined with the small increase in supply, pushed the national gas price average two cents more expensive on the week to $2.88.

Cheaper crude oil prices, which are mostly pricing at less than $63/barrel and stable and strong refinery utilization (85 percent) are contributing factors keeping pump price jumps incremental. On the week, 35 state averages increased with the majority seeing only one to three cent jumps. 

Oil Market Dynamics
At the close of Friday's formal trading session, WTI increased by 71 cents to settle at $62.14. Although prices ended the day with an increase, supported by a weak dollar, the price of crude took a step back by approximately a dollar on the week. Growing market concern that surging coronavirus infection rates in Asia may derail expectations for crude demand recovery helped to reduce prices. Additionally, EIA's latest weekly report revealed that total domestic crude inventory increased by 600,000 bbl to 493 million bbl, contributing to downward pressure on crude prices. If market concerns persist this week, crude prices could end the week lower again. 

Colorado Gas By the Numbers

Boulder-Longmont
• Current Average: $2.88
• Yesterday Average: $2.88
• Week Ago Average: $2.89
• Month Ago Average: $2.87
• Year Ago Average: $1.72

Greeley
• Current Average: $2.91
• Yesterday Average: $2.91
• Week Ago Average: $2.91
• Month Ago Average: $2.83
• Year Ago Average: $1.64

Fort Collins-Loveland
• Current Average: $2.91
• Yesterday Average: $2.91
• Week Ago Average: $2.89
• Month Ago Average: $2.84
• Year Ago Average: $1.85

Denver
• Current Average: $2.92
• Yesterday Average: $2.93
• Week Ago Average: $2.91
• Month Ago Average: $2.87
• Year Ago Average: $1.67

Grand Junction
• Current Average: $2.95
• Yesterday Average: $2.95
• Week Ago Average: $2.94
• Month Ago Average: $2.92
• Year Ago Average: $1.69

Colorado Springs
• Current Average: $2.96
• Yesterday Average: $2.97
• Week Ago Average: $2.95
• Month Ago Average: $2.90
• Year Ago Average: $1.68

Durango
• Current Average: $3.04
• Yesterday Average: $3.04
• Week Ago Average: $3.05
• Month Ago Average: $3.06
• Year Ago Average: $2.11

Pueblo
• Current Average: $3.09
• Yesterday Average: $3.09
• Week Ago Average: $3.01
• Month Ago Average: $2.97
• Year Ago Average: $1.75

Vail
• Current Average: $3.21
• Yesterday Average: $3.21
• Week Ago Average: $3.21
• Month Ago Average: $3.24
• Year Ago Average: $1.82

Glenwood Springs
• Current Average: $3.22
• Yesterday Average: $3.22
• Week Ago Average: $3.22
• Month Ago Average: $3.15
• Year Ago Average: $1.96