U.S. gasoline prices moved lower the week of May 25, with the national average falling to $4.42 per gallon, down 12 cents from the prior week. The decline follows a drop in crude oil prices, influenced in part by geopolitical developments and evolving global supply expectations.

At the same time, recent data from the U.S. Energy Information Administration (EIA) points to steady underlying demand. Gasoline consumption increased week over week, while inventories declined and remain below typical seasonal levels. Despite short-term price relief at the pump, broader market fundamentals continue to reflect a relatively balanced-to-firm supply-demand environment.

According to AAA, gasoline prices remain elevated compared to recent years as the summer driving season approaches. While recent price declines appear tied to near-term crude price movements, shifts in demand and inventory levels may continue to shape market conditions in the weeks ahead.

Source: AAA.com