AAA Michigan reports that the statewide average daily gas price dropped 11 cents from the previous week.
Michigan’s current statewide average is about $2.35 per gallon, about 11 cents less than last week’s average and about 60 cents less than this same time last year. This is the third week in a row that the statewide daily gas price has had a double-digit decrease.
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Metro Detroit’s current daily gas price average is about $2.40 per gallon, about 9 cents less than last week’s average and about 57 cents less than this same time last year. This is the third week in a row that Metro Detroit’s daily gas price has decreased.
Of the ten Michigan metro areas surveyed by AAA for self-serve unleaded fuel prices, the lowest average price, for the third week in row, can be found in the Traverse City area where it’s about $2.20 per gallon. The highest average price can be found in the Marquette area where it’s about $2.42 a gallon.
Michigan ranks third in the nation for largest monthly decline in gas prices:
Michigan ranks fifteenth in the nation for most expensive average gas prices.
This year’s summer driving season is likely to set new records for both gasoline demand and vehicle miles traveled.
The latest data from the U.S. EIA shows that gasoline demand is currently at an all-time high.
Strong demand can put additional pressure on refineries, and their ability to sustain output and keep gasoline flowing to markets directly impacts the price consumers pay at the pump.
Refineries are reportedly increasing output and gasoline supply has more than kept pace with growing demand.
Refinery utilization rates reached their highest level since April and gasoline inventories posted an increase in the face of these record numbers.
If the market can remain adequately supplied drivers are likely to continue paying prices unseen for the summer months in more than a decade.
The global oil market is responding to expectations of increased supply, thanks to the return of production from the Canadian Oil Sands and reports of strong output from OPEC member countries.
The global oil market has been characterized by extreme oversupply for the better part of the year, but the tide appeared to be turning thanks to record gasoline demand from the U.S. and expectations that demand from other nations would also grow.
The Brexit put a damper on these speculations because it contributed to the U.S. dollar gaining strength.
A strong dollar makes crude oil more expensive for countries holding other currencies, which limits purchasing power, and could reduce global crude oil demand.
The full impact of the Brexit remains unknown.