The national average for a gallon of gas dipped slightly by three cents since last week to $3.09. One reason could be lower demand, as fewer people are fueling up after the peak of holiday road travel, according to AAA.
“January is a bit of blah time of year, and gas prices are in the doldrums as well,” said Andrew Gross, AAA spokesperson. “Barring some unexpected shock to the global oil market, gas prices will likely shuffle up and down a few cents for a while.”
According to new data from the Energy Information Administration (EIA), gas demand nosedived from 9.17 to 7.95 million b/d last week. Meanwhile, total domestic gasoline stocks increased substantially by 10.9 million bbl to 237 million bbl. Weak gas demand, alongside increased supply, has pushed pump prices lower. However, rising oil prices have limited price decreases. If gas demand remains weak, drivers will likely continue to see pump prices trickle downward.
Today’s national average of $3.09 is 15 cents less than a month ago and 17 cents less than a year ago.
Since last Thursday, these 10 states have seen the largest decreases in their averages: Ohio (−14 cents), Indiana (−10 cents), Florida (−9 cents), Delaware (−8 cents), Michigan (−8 cents), Maryland (−7 cents), Wyoming (−7 cents), Tennessee (−6 cents), Idaho (−6 cents) and Nebraska (−6 cents).
The nation’s top 10 most expensive markets: California ($4.71), Hawaii ($4.66), Washington ($4.11), Nevada ($3.94), Oregon ($3.76), Alaska ($3.62), Pennsylvania ($3.38), New York ($3.34), Arizona ($3.33) and Vermont ($3.28).
At the close of Wednesday’s formal trading session, WTI increased by $2.32 to settle at $72.70. Oil prices have increased this week amid heightened tensions in the Middle East. Shipping disruptions in the Red Sea and the potential for tighter sanctions on Iran have led to market concerns that the oil supply could tighten and transportation costs could rise. Additionally, the EIA reported that total domestic commercial crude inventories declined by 5.5 million bbl to 431.1 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
