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AAA: Pump prices dip on lower oil costs

The national average for a gallon of gas fell three cents since last week to $3.39. The main reason is the oil price, which fell into the mid $70s per barrel, nearly $5 cheaper than a week ago, according to AAA.

“The cost for oil accounts for 55% of what we pay at the pump,” said Andrew Gross, AAA spokesperson, “so higher or lower oil costs will play a major role in the price we pay when fueling up.”

According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.27 million b/d to 8.91 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 1.8 million bbl to 240.1 million bbl last week. However, fluctuating oil prices have contributed to pushing pump prices lower. But if gas demand keeps rising amid tightening domestic stocks, drivers may see an end to future pump price drops.

Today’s national average of $3.39 is three cents less than a month ago and 14 cents less than a year ago.

gas chart with price dip

Since last Thursday, these 10 states have seen the largest changes in their averages: Ohio (−9 cents), California (+7 cents), Iowa (−7 cents), Tennessee (−7 cents), New Jersey (−7 cents), Wisconsin (−7 cents), Oregon (+6 cents), Virginia (−6 cents), Rhode Island (−6 cents) and Alabama (−6 cents).

The nation’s top 10 least expensive markets: Texas ($2.96), Mississippi ($2.99), Kentucky ($3.02), Missouri ($3.03), Arkansas ($3.04), South Carolina ($3.04), Alabama ($3.05), Tennessee ($3.06), Oklahoma ($3.07) and Louisiana ($3.07).

At the close of Wednesday’s formal trading session, WTI decreased by $2.41 to settle at $73.95. Crude prices have declined due to the strengthening of the dollar and market concerns about increasing domestic oil inventories. An increase in supply could mean that demand may not move as high as anticipated. EIA reported that total domestic commercial crude inventories increased substantially by 7.6 million bbl to 479 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.

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