Record-High Gas Prices Expected for August Amid Ongoing Crude Oil Volatility

The national average for a gallon of regular gasoline is $4.09, which is one cent lower than last week's price but still high due to continued volatility in the crude oil market.

Crude oil prices remain in the $80 per barrel range, driven by ongoing tensions in the Strait of Hormuz, and this has resulted in record-high gas prices for August. In fact, the national average in August has been above $4 per gallon every day, making it likely that this month will set a new record as the most expensive at the pump.

The Energy Information Administration (EIA) reports that gasoline demand increased last week, while total domestic gasoline supply decreased. Additionally, crude oil inventories rose by 0.1 million barrels from the previous week, but remain 1% above the five-year average for this time of year.