Output for the week ended June 11 came in level with the prior week and well below estimates. That means supplies remain far short of normal seasonal ranges.
On the other hand, demand from the summer driving season and an economy performing above expectations is headed toward its annual peak
Here is the chart from the article:
Despite this issued with production, gas prices continue to fall:
For the third consecutive week, the U.S. average retail price for regular gasoline decreased, falling 8.1 cents to 307.6 cents per gallon as of June 11, 2007. Prices are still 17.0 cents per gallon higher than this time last year. All regions reported price decreases. East Coast prices dropped 4.6 cents to 302.2 cents per gallon. The largest regional decrease was in the Midwest, where prices fell 15.2 cents to 307.3 cents per gallon. Prices for the Gulf Coast decreased 5.8 cents to 296.2 cents per gallon, while Rocky Mountain prices fell 3.5 cents to 322.5 cents per gallon. West Coast prices were down 5.3 cents to 326.5 cents per gallon. The average price for regular grade in California was down 5.4 cents to 332.0 cents per gallon, but remains 9.5 cents per gallon above last year's price.
However, as this chart from the same report shows, gas prices are still above year ago levels.
Yesterday's retail sales indicated gas prices aren't having a negative impact on consumer spending, categories outside of gas sales showed increases.
