WASHINGTON, D.C. — The national average for a gallon of gas dropped another week, falling six cents to $3.43. Pump prices have fallen every day since January 28. Fewer people fueling up, and lower costs for oil, are behind the price dip.
“Drivers may have a little more in their wallets as we head toward Valentine’s Day,” said Andrew Gross, AAA spokesperson, “and if gas demand and oil costs remain low, drivers will likely see pump prices drop through next week.”
According to new data from the Energy Information Administration (EIA), gas demand dipped slightly from 8.49 million to 8.43 million b/d last week. The current gas demand rate is approximately 700,000 b/d lower than the rate during the first week of February 2022, helping to explain why gas prices are declining. Meanwhile, total domestic gasoline stocks increased significantly by 5 million bbl to 239.6 million bbl last week. If gas demand remains low amid growing total domestic stocks, pump prices will drop further.
Today’s national average of $3.43 is 15 cents more than a month ago, but 3 cents less than a year ago.
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Delaware (−15 cents), Ohio (−11 cents), Maryland (−11 cents), Tennessee (−11 cents), Alabama (−10 cents), South Carolina (−10 cents), Wisconsin (−10 cents), Florida (−10 cents), Virginia (−9 cents) and Texas (−9 cents).
- The nation’s top 10 least expensive markets: Texas ($3.03), Mississippi ($3.09), Missouri ($3.10), Kentucky ($3.11), Arkansas ($3.11), Oklahoma ($3.12), South Carolina ($3.13), Tennessee ($3.14), Louisiana ($3.16) and Kansas ($3.16).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI increased by $1.33 to settle at $78.47. Crude prices rose yesterday due to persistent market optimism that global oil demand will be stronger than expected, particularly as China’s economy re-opens after strict lockdowns due to rising coronavirus infection rates. Oil prices rose despite the EIA reporting that total domestic commercial crude inventories increased by 2.4 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.