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AAA: Like a tired party balloon, gas prices slowly deflate

The national average for a gallon of gasoline kept up its glacial descent, falling four cents since last week to $3.60, according to AAA.

The primary reasons are weak domestic demand and oil costs below $80 a barrel, AAA said.

“Barring some unforeseen event, this pokey drop in pump prices is not likely to change anytime soon,” said Andrew Gross, AAA spokesperson. “There are seven states with county gas averages at less than $3 a gallon. This trend will likely accelerate as more gas outlets east of the Rockies drop their prices.”

According to new data from the Energy Information Administration (EIA), gas demand rose modestly from 8.79 million b/d to 8.87 last week. Meanwhile, total domestic gasoline stocks decreased slightly from 228 to 227.8 million bbl.  Lackluster pre-Memorial Day demand and steady or falling oil prices could lower pump prices.

Today’s national average is $3.60, four cents less than a month ago but seven cents more than a year ago.

Since last Thursday, these 10 states have seen the largest weekly changes in their averages: Colorado (+14 cents), Indiana (-11 cents), New Mexico (+11 cents), Nevada (-8 cents), Utah (-8 cents), Tennessee (-8 cents), California (-7 cents), Ohio (-7 cents), Delaware (-6 cents) and Maryland (-6 cents).

The nation’s top 10 most expensive markets are California ($5.24), Hawaii ($4.80), Washington ($4.62), Nevada ($4.40), Oregon ($4.40), Alaska ($4.34), Arizona ($3.92), Illinois ($3.89), Idaho ($3.83), and Pennslyvania ($3.75).

At the close of Wednesday’s formal trading session, WTI increased by 61 cents to settle at $78.87 a barrel. Prices rose as the EIA reported that crude oil inventories had decreased by 2.5 million barrels from the previous week. At 457.0 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.

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.

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