WASHINGTON, D.C. — The decline in pump prices accelerated a bit since last week, with the national average falling seven cents to $3.76. The primary culprits are slack demand and the falling cost of oil, which has shaved more than $10 and is hovering near $82 per barrel.
“Drivers are finally seeing some relief at the pump as the seasonal swoon picks up momentum,” said Andrew Gross, AAA spokesperson. “At least one state has locations selling gas below $3 a gallon, and we should begin to see more states join in over the next few weeks.”
According to new data from the Energy Information Administration (EIA), gas demand dropped significantly from 8.62 to 8.01 million b/d last week. On the other hand, total domestic gasoline stocks increased substantially by 6.5 million bbl to 227 million bbl. Growing supply, amid low demand, has pushed pump prices down. If oil prices continue to decline, drivers can expect further price drops at the pump in the weeks ahead.
Today’s national average of $3.76 is five cents less than a month ago and seven cents less than a year ago.
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Nevada (−16 cents), Indiana (−15 cents), Delaware (−14 cents), Iowa (−13 cents), Ohio (−12 cents), Wisconsin (−12 cents), Montana (−11 cents), Minnesota (−11 cents), Oklahoma (−11 cents) and California (−10 cents).
- The nation’s top 10 least expensive markets: Georgia ($3.20), Mississippi ($3.20), South Carolina ($3.27), Alabama ($3.28), Louisiana ($3.28), Delaware ($3.29), Texas ($3.29), Tennessee ($3.30), Arkansas ($3.33) and Ohio ($3.35).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by $5.01 to settle at $84.22. Oil prices fell sharply yesterday due to rising market concern that if interest rates continue to increase, the economy could tip into a recession. If a recession occurs, crude demand and prices would likely drop. Additionally, the EIA reported that total commercial crude stocks decreased by 2.2 million bbl to 414.1 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.