For the third consecutive week, South Dakota’s gasoline price average has dropped for a total of 5 cents. At $2.35 per gallon of self-serve regular, the state average is 1 cent above the nation’s average of $2.34. This national price average is a penny cheaper than one week ago, seven cents less than a month ago, but +12 cents more than a year ago.
“OPEC is expected to draft a formalized production cut extension during its meeting in Vienna, Austria, on May 25,” said Marilyn Buskohl, spokeswoman for AAA South Dakota. “But there’s still quite a bit of skepticism that any extended cuts will offset growing U.S. production. Last week, U.S. drillers added an additional nine oil rigs, bringing the total U.S rig count to 712 and marking 17 weeks of growth.”
The latest Energy Information Association (EIA) report shows that gasoline demand increased by 252,000 barrels on the week. Despite the jump in demand, the continued oversupply of gasoline caused prices in most parts of the country to drop or remain steady with the exception of some states in the Great Lakes and Central regions, where prices increased by a penny or more.
In coming weeks, the onset of summer travel is likely to increase demand which might help dip into high gasoline stocks; however, AAA says it may not be enough demand to increase prices significantly.
Current Price Averages per Gallon of Regular Gasoline
Sioux Falls – $2.22, down 12 cents from one month ago … up 12 cents since 5/15/16
Rapid City – $2.42, down 1 cent from one month ago … up 19 cents since 5/15/16
South Dakota – $2.35, down 5 cents from one month ago … up 16 cents since 5/15/16
U.S. – $2.34, down 7 cents from one month ago … up 12 cents since 5/15/16
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