News Department

AAA: Gas prices nudge down, but further relief could face turbulence

The national average for a gallon of gas dropped four cents since last week, despite growing gas demand, according to AAA.

However, the price of oil has declined several dollars per barrel and is holding steady below $80, contributing to lower pump prices. As Labor Day approaches, gas demand and volatile oil prices, particularly during an active hurricane season, could limit how much lower prices descend in the weeks ahead, AAA said.

“Although the national average did a U-turn this week, the road ahead could lead to higher prices,” said Andrew Gross, AAA spokesperson. “Ongoing concerns regarding potential storm activity could hinder falling pump prices this fall.”

According to new data from the Energy Information Administration (EIA), gas demand jumped from 8.85 to 8.91 million b/d last week. Meanwhile, total domestic gasoline stocks increased slightly from 216.2 to 217.6 million bbl. Although demand increased, growing stock levels contributed to pushing prices lower.

Today’s national average of $3.83 is 24 cents more than a month ago but five cents less than a year ago.

Since last Thursday, these 10 states have seen the largest decreases in their averages: Indiana (−13 cents), Iowa (−11 cents), Florida (−10 cents), Wisconsin (−10 cents), Michigan (−10 cents), Ohio (−9 cents), Minnesota (−9 cents), Kentucky (−7 cents), Nebraska (−6 cents) and Delaware (−6 cents).

The nation’s top 10 most expensive markets: California ($5.26), Washington ($5.06), Hawaii ($4.78), Oregon ($4.72), Alaska ($4.55), Nevada ($4.47), Utah ($4.22), Arizona ($4.25), Idaho ($4.12) and Illinois ($4.11).

At the close of Wednesday’s formal trading session, WTI decreased by 75 cents to settle at $78.89. Oil prices have declined this week amid market concerns that an economic slowdown in China, the world’s largest importer of crude oil, could push global oil demand down, which could also lead to lower prices. The price of oil has declined despite the EIA reporting that total domestic commercial crude inventories decreased from 439.7 to 433.5 million bbl last week.

Drivers can find current gas prices along their route using the AAA TripTik Travel planner.

Jay Edwards

Born and raised in Northwest NJ, Jay has a degree in Communications and has had a life-long interest in local radio and various styles of music. Jay has held numerous jobs over the years such as stunt car driver, bartender, voice-over artist, traffic reporter (award winning), NY Yankee maintenance crewmember and peanut farm worker. His hobbies include mountain climbing, snowmobiling, cooking, performing stand-up comedy and he is an avid squirrel watcher. Jay has been a guest on America’s Morning Headquarters,program on The Weather Channel, and was interviewed by Sam Champion.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button