US Thanksgiving holiday gasoline prices lowest in five years: EIA

The average retail price for gasoline in the US on Nov. 23 was $2.10/gal, lowest for the first day of the week before Thanksgiving since 2015, according to the US Energy Information Administration (EIA).

The COVID-19 pandemic has wrecked US gasoline demand since March.

Crude oil prices, which generally account for about half the retail gasoline price, dropped precipitously throughout 2020, bringing refined product prices with them.

The American Automobile Association (AAA) expects a 4% decline in Thanksgiving holiday travel by automobile in 2020 compared with 2019.

The demand destruction has gasoline storage busting at the seams. Total US gasoline stocks grew 2.18 million barrels to 230.15 million barrels for the week ended Nov. 20, EIA data showed, nearly 1 million barrels more than the same week in 2019.

Unleaded gasoline on the US Gulf Coast has averaged front-month NYMEX RBOB futures minus 3 cents/gal in November 2020, compared to minus 1.60 cents/gal in November 2019.

On the US Atlantic Coast, New York Harbor barge RBOB and CBOB differentials have both declined since the start of the month, falling 1.35 cents/gal and 1.65 cents/gal, respectively, between Nov. 2-24.

On the US West Coast, differentials have gradually declined over the past week, weighed down by low demand and minimal market activity.

USWC refinery production rates plummeted to a 10 year low during the week ended Nov. 20, shedding 23,000 b/d to settle at a production rate of 32,000 b/d according to EIA data.

One market source was especially taken aback by these figures, as production rates have historically gained in the run up to the Thanksgiving holiday weekend.