Stagnant demand at fuel stations combined with decreased oil prices is causing a slow drop in gas prices, according to the latest report from AAA.
Nationwide gas prices fell on average by nine cents to $3.44 for the week ending November 2, AAA said. The national average is 37 cents less than a month ago and 32 cents less than a year ago. AAA spokesperson Andrew Gross stressed the importance of keeping a watchful eye on global tensions while also anticipating that motorists will welcome cost savings when refilling their vehicles.
"There are now thousands of gas stations selling regular below $3 a gallon and even a few that have dipped below $2," Gross said. "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."
The West Texas Intermediate (WTI) – an oil price benchmark – decreased by 58 cents to $80.44 at the close of Wednesday’s formal trading session. Gas demand saw a slight decrease from 8.86 to 8.7 million barrels per day last week, according to new data from the Energy Information Administration (EIA).
Oil prices dipped Wednesday after the Federal Reserve chose to leave interest rates unchanged.
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Since last week, these 10 states have seen the largest decreases in their average gas prices, according to AAA.
Fuel costs in some states are now below $3 a gallon. Here are the nation’s top 10 most affordable markets.
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The current national average price of gas is at its lowest point since March 28, according to the latest press release from GasBuddy. Drivers in 33 states can locate at least one gas station at $2.99 a gallon or lower.
The switch over to winter gasoline is also a big factor in bringing down gas prices. Summer-blend fuel costs more than winter-blend fuel primarily because the production process takes longer.
"The fall in gasoline prices is tied to seasonal factors, including declining gasoline consumption as colder weather keeps Americans inside, as well as the changeover to winter gasoline, which has now been done in every state," the report said. "In some states and regions, there has been improvement in refinery snags, which had hit the West Coast and Corn Belt hard in late summer, sending prices higher. Those areas have seen dramatic declines due to the early changeover to winter gasoline, with average prices in California down a staggering 80 cents in just four weeks."
Head of petroleum analysis at GasBuddy Patrick De Hann spoke on the potential for a continued decline in gas prices heading into the new year.
"GasBuddy anticipates the drop could continue into November and December, with the national average falling another 10 to 20 cents in the weeks ahead, so long as the violence in the Middle East does not spread or jump to other countries," De Hann said.
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