Mounting concerns about the increase in global coronavirus cases and the reinstatement of lockdown policies in some countries has driven crude oil prices down to the lowest closing price – $35/bbl – since June. In comparison, last year at this time crude was pricing at about $20/bbl more expensive.
As crude prices decreased last week, the U.S. saw fluctuation in gasoline demand and supply. Demand increased from 8.2 million b/d to 8.5 million b/d while supply decreased 90,000 b/d to 226 million bbl. Despite the jump in demand, motorists are paying less to fill up. The national average pushed four cents cheaper to $2.12, while every state except South Dakota (+1 cent) saw gas prices hold steady or decrease.
“The national gas price average at the start of November has not been this cheap since 2004. If crude oil continues to push cheaper, we could see the national average drop below $2/gallon before the end of the year,” said Jeanette Casselano McGee, AAA spokesperson.
Across the country, state gas price averages are cheaper on the month and the week. Today, motorists can find gas for $2/gallon or less at 52% of gas stations.
- The nation’s top 10 largest weekly decreases: Ohio (-9 cents), Indiana (-8 cents), Washington, D.C. (-8 cents), Michigan (-7 cents), Kentucky (-6 cents), Texas (-4 cents), North Carolina (-4 cents), South Carolina (-4 cents), Tennessee (-4 cents) and Minnesota (-4 cents).
- The nation’s top 10 least expensive markets: Missouri ($1.79), Mississippi ($1.81), Texas ($1.81), Oklahoma ($1.81), Arkansas ($1.83), South Carolina ($1.84), Louisiana ($1.86), Alabama ($1.86), Tennessee ($1.87) and Kansas ($1.90).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 38 cents to settle at $35.79. Domestic crude prices decreased in light of market concern about increasing coronavirus infections worldwide, which could lower crude demand. EIA’s weekly report has also contributed to the decline in prices after it showed that total domestic crude inventories grew by 4.3 million bbl to 492.4 million bbl. If demand concerns continue this week, crude prices will likely decrease again.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.