Despite global tensions causing ripples through the oil market, the national average for a gallon of gas maintained its autumnal dip, falling eight cents since last week to $3.56. Pump prices have lost 32 cents since their 2023 peak of $3.88 a month ago. This means drivers are saving about $5 every time they fuel up.
“While gas prices are falling about a penny a day, that feels like a glacial pace,” said Andrew Gross, AAA spokesperson. “The oil market is watching to see if the war between Israel and Hamas widens, so the price is stuck at a rather elevated price in the mid-$80s per barrel. This, in turn, is slowing the decline in gas prices.”
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.58 to 8.94 million b/d last week. On the other hand, total domestic gasoline stocks decreased by 2.4 million bbl to 223.3 million bbl. Although higher demand and tightening supply typically increase pump prices, flat oil prices have had the opposite effect. If oil prices remain steady or fall, drivers can expect further price drops at the pump in the weeks ahead.
Today’s national average of $3.56 is 32 cents less than a month ago and 29 cents less than a year ago.
Quick Stats
- Since last Thursday, these 10 states have seen the largest decreases in their averages: California (−18 cents), Arizona (−16 cents), Alaska (−14 cents), Florida (−12 cents), Washington (−12 cents), Nevada (−12 cents), Oregon (−11 cents), Utah (−11 cents), Minnesota (−11 cents) and Texas (−11 cents).
- The nation’s top 10 least expensive markets: Georgia ($3.03), Texas ($3.03), Mississippi ($3.04), Alabama ($3.09), Louisiana ($3.10), Delaware ($3.10), South Carolina ($3.10), Tennessee ($3.11), Arkansas ($3.15) and Kentucky ($3.18).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI remained unchanged at $86.66. Earlier in the week, the price of oil rose due to concerns that the Israel-Hamas war could lead to reduced oil output from countries in the region, but those concerns have subsided since it appears the conflict will not spread across the Middle East for now. Additionally, the EIA reported that total domestic commercial crude supply dropped by 4.5 million bbl to 419.7 million bbl.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
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