WASHINGTON, D.C. (November 2, 2023)—Maintaining a steady if unspectacular pace, the national average for a gallon shaved off nine cents since last week, falling to $3.44. The primary reasons are flat demand at the pump and lower costs for oil.
“There are now thousands of gas stations selling regular below $3 a gallon and even a few that have dipped below $2,” said Andrew Gross, AAA spokesperson. “We still need to watch global events for the effect on oil prices, but for now, drivers will benefit from falling prices with every visit to the pump.”
According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.86 to 8.7 million b/d last week. Meanwhile, total domestic gasoline stocks remained flat at 223.5 million bbl. Lower gas demand, alongside declining oil prices, has contributed to pushing pump prices down. If the price of oil remains low, drivers can expect to see further price drops.
Today’s national average of $3.44 is 37 cents less than a month ago and 32 cents less than a year ago.
- Since last Thursday, these 10 states have seen the largest decreases in their averages: Arizona (−19 cents), Montana (−16 cents), California (−14 cents), Colorado (−14 cents), Oklahoma (−12 cents), New Mexico (−12 cents), Iowa (−11 cents), Nevada (−11 cents), North Dakota (−11 cents) and Alaska (−11 cents).
- The nation’s top 10 least expensive markets: The nation’s top 10 least expensive markets: Texas ($2.93), Georgia ($2.93), Mississippi ($2.94), Louisiana ($3.01), South Carolina ($3.02), Alabama ($3.02), Arkansas ($3.04), Tennessee ($3.06), Oklahoma ($3.09) and Kentucky ($3.11).
Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by 58 cents to settle at $80.44. Oil prices fell yesterday as the dollar strengthened after the U.S. Federal Reserve decided to hold off on another interest rate increase for now. Additionally, the EIA reported that total domestic commercial crude inventories increased by 800,000 bbl to 421.9 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.