The national average price for a gallon of gas fell seven cents in the past week to reach $3.71, a level not seen since the beginning of March. The primary reason for this decline is the recent lower cost for oil.
“Less expensive oil usually leads to less expensive gas for drivers,” said Andrew Gross, AAA spokesperson. “This trend has helped pump prices fall steadily for three straight months and, with fall approaching, more markets could soon see prices below $3 per gallon.”
According to data from the Energy Information Administration (EIA), gas demand increased slightly from 8.59 million b/d to 8.73 million b/d last week. Meanwhile, total domestic gasoline stocks rose by 300,000 bbl to 214.8 million bbl. Although gasoline demand has increased slightly, lower oil prices have led to falling pump prices. If gasoline demand begins to subside, as it typically does post-Labor Day with the end of summer driving, pump prices will likely continue to decrease.
Today’s national average of $3.71 is 26 cents less than a month ago but 54 cents more than a year ago.
The nation’s top 10 largest weekly decreases: Maryland (−15 cents), Delaware (−14 cents), Connecticut (−14 cents), New York (−13 cents), Mississippi (−13 cents), Texas (−12 cents), Rhode Island (−12 cents), New Jersey (−12 cents), Massachusetts (−12 cents) and New Hampshire (−12 cents).
The nation’s top 10 least expensive markets: Texas ($3.14), Mississippi ($3.15), Arkansas ($3.16), Louisiana ($3.19), Georgia ($3.24), Tennessee ($3.26), Oklahoma ($3.28), Alabama ($3.29), Missouri ($3.30) and South Carolina ($3.31).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $3.25 to settle at $86.79. Although a weakening dollar helped to increase crude prices at the end of the week, prices dropped earlier in the week amid ongoing market concerns that oil demand will fall if economic growth slows or stalls due to a recession. For this week, crude prices could decrease if demands concerns persist. Additionally, EIA’s latest weekly report showed that total commercial crude inventories increased significantly by 8.9 million bbl to 427.2 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
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