โฝ Weekly Fuel Forecast: May 22โ29 โ Memorial Day Gas Hits $4.56, Highest in 4 Years & Over $4 in All 50 States
It's official: every single US state is now above $4/gallon heading into Memorial Day weekend. The national average hit $4.56 as of May 21 โ the highest Memorial Day price since 2022 and $1.38 more than last year.
AAA's headline says it all: "Memorial Day Weekend Gas Prices Reach Four-Year Highs."
A record 39.1 million Americans are expected to hit the road this weekend despite these prices. Here's what's behind the surge.
๐ This Week's Numbers
National average: $4.56/gal (up 3ยข week-over-week, +$1.38 year-over-year)
Cheapest states: Mississippi ($4.01), Georgia ($4.03), Indiana ($4.04), Louisiana ($4.05)
Most expensive: California ($6.14), Washington ($5.78), Hawaii ($5.64), Oregon ($5.35)
Crude oil: WTI at ~$98/bbl, Brent at ~$105/bbl
๐ฅ 3 Things Driving Prices Right Now
Iran is literally charging tolls on the Strait of Hormuz. Iran launched the "Persian Gulf Strait Authority" on May 18, imposing a permit-and-toll regime on ships passing through the strait. Over 11 million barrels/day of Gulf crude remain curtailed. Wood Mackenzie warns oil could hit $200/barrel if disruptions extend through year-end.
Memorial Day demand is slamming into shrinking supply. Gasoline inventories fell to 214.2 million barrels โ well below the 5-year average. Meanwhile 39.1 million drivers are hitting the road this weekend. The IEA warns oil markets could enter a "red zone" by July.
Peace talks are stalling. The US and Iran have signaled progress, but they're deadlocked over Iran's uranium stockpile and who controls Hormuz. Don't count on a quick deal to bring relief.
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