WEX Monthly PPG Average Report for June 2014
|Los Angeles, CA||$4.19||$4.15|
|New Orleans, LA||$3.43||$3.69|
|San Francisco, CA||$4.25||$4.31|
|St. Louis, MO||$3.56||$3.64|
|National Average (US)||$3.67||$3.88|
Gasoline Prices Likely to See a Slow Fade in July
Gasoline prices start the second half of 2014 at $3.65 per gallon. It is the highest national average in early July since 2008 when the price was marching toward a record of $4.10. The good news is that most experts predict prices to slowly fade for the remainder of the month.
Iraq, which saw large swaths of its territory fall into the hands of radicals in June, spooked traders into pushing crude prices near $110 per barrel; however, market conditions were not as bad as they seemed, and the situation, while still volatile, does not appear as bleak as when the city of Mosul fell on June 20th.
Crude prices have fallen closer to $100 per barrel and wholesale gasoline prices have seen tremendous drops. Hurricane fears are still a few weeks away and are generally bullish for prices when they head toward the Gulf Coast. With the exception of Sandy, hurricanes that head up the Atlantic Coast are usually demand killers and typically do not impact supply.
Overall demand, while stronger in the summer, is still down from its peak in 2007 by roughly 6 percent. The increases of efficient fleet, telecommuting and urban living has kept a better supply/demand balance. This ratio looks good for the seeable future. Market-watchers believe that the national average could fall below $3.50 per gallon by the end of the month.
Meantime, diesel prices are hanging around $3.90 per gallon. Experts believe diesel prices will remain steady for the remainder of the summer and could see its usual seasonal hikes in September.