Retail gasoline demand up last week: MasterCard

NEW YORK (Reuters) - Retail gasoline demand increased 1.3 percent last week as average gasoline prices dipped below $4 nationwide, MasterCard Advisors said Tuesday.

"This is the first week since May that we've seen every region with an average price below $4 a gallon," said Michael McNamara, vice president of research and analysis at MasterCard Advisors.

The average price for gasoline was down 7 cents at $3.70 per gallon in the latest week.

American motorists pumped an average of 9.579 million barrels per day in the week ended August 22, down 2.9 percent from the year-ago level.

Still, last week saw the smallest year-over-year decline in gasoline consumption since June 27.

The four-week moving average for gasoline demand, which is usually indicative of the long-term trend, was down 4.5 percent, making last week the 28th consecutive week of declines.

Year-to-date, gasoline consumption was down 2.6 percent from last year.

Meanwhile, a Reuters poll showed energy analysts forecast that the Energy Information Administration would on Wednesday report a decline in U.S. gasoline inventories for the fifth week in a row as refiners draw down inventories of summer-grade gasoline and head into autumn maintenance season.

MasterCard Advisors estimates retail gasoline demand based on aggregate sales activity in the MasterCard payments system, coupled with estimates for all other payment forms. MasterCard Advisors is a unit of MasterCard Inc.

(Reporting by Rebekah Kebede; Editing by John Picinich)