โฝ Weekly Fuel Forecast: Oct 16โ23 โ Third Weekly Drop to $4.33 as Crude Nears $100
The third weekly drop is here. Crude is not playing along.
AAAโs national average fell about 4 cents this week to $4.33 as of October 16. That is still the first $4 October on record, and the 158th day this year above $4. A year ago regular was $3.06. Thatโs still +$1.27 per gallon. Diesel went the other way, up to $6.33/gal from $6.28 last week, off a $6.53 record on September 22.
The pump is still working off last weekโs $88 crude. This week WTI is back near $97, Brent near $106. That lag will not last.
๐ This Week's Numbers
National average: $4.33/gal (down ~4ยข week-over-week, +$1.27 year-over-year, roughly flat month-over-month)
Cheapest states: North Carolina ($3.67), Georgia ($3.76), Texas ($3.82), Tennessee ($3.87)
Most expensive: California ($6.22), Hawaii ($5.64), Nevada ($5.42), Washington ($5.41)
Crude oil: WTI ~$97/bbl (Thursday settle $97.97), Brent ~$106/bbl
Diesel: $6.33/gal, up this week, still historically extreme
๐ฅ 3 Things Driving Prices Right Now
The pump dropped. Crude rallied. Last week WTI settled at $88. This week it printed $95, then $98. AAA says prices โarenโt budging much as crude oil prices remain high, once again nearing $100 per barrel.โ Retail lags crude by 1โ3 weeks. This 4-cent cut is old oil. The new oil is expensive.
Hormuz got worse. A container ship and a dry bulk carrier sank near the strait after projectile strikes. Iran said it is stepping up attacks. Kpler put daily Gulf flows at 11.62 million b/d in the week to October 13, down from a 17.15 million baseline. IEA members are speeding the remaining 100 million barrels of emergency stocks, including 20 million barrels of diesel. That caps the spike. It does not reopen the waterway.
Hurricane Isaias hit the crude tape. EIA crude inventories fell 8.6 million barrels to 415.6 million, 3% below the 5-year average, the steepest draw since February. Gasoline stocks built 3.5 million barrels as demand faded to 8.40 million b/d. Distillate drew 2.5 million barrels and sits ~12% below seasonal. Gasoline can ease a little more. Diesel cannot.
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