Multiple factors contribute to uncertainty in the oil market.
WASHINGTON, D.C. — A drop in fuel demand contributed to the national average price of fuel falling four cents over the past week to reach $3.67 for a gallon of regular gas. However, this is the smallest weekly decline in several months.
This modest drop may signal that the nearly 100-days-long streak of daily price declines will be broken soon, reported AAA.
"All streaks have to end at some point, and the national average for a gallon of gas has fallen $1.34 since its peak in mid-June," said Andrew Gross, AAA spokesperson. "But there are big factors tugging on global oil prices — war, COVID, economic recession and hurricane season. All this uncertainty could push oil prices higher, likely resulting in slightly higher pump prices."
The majority of the United States is already using the less expensive winter blend gasoline, resulting in modest price reductions at the pump. California is the only state that still needs to make the switch, which will happen on Nov. 1.
The U.S. Energy Information Administration (EIA) reported that gas demand decreased from 8.73 million barrels per day to 8.49 barrels per day last week while total domestic gasoline stocks fell by 1.8 million barrels to 213 million barrels. Although gasoline demand has fallen, fluctuating oil prices have prompted smaller pump price decreases.
The national average will likely reverse course if oil prices spike, according to AAA.
The current national average of $3.67 is 24 cents less than one month ago and 48 cents more than one year ago.
The top 10 largest weekly price decreases in the country occurred in Connecticut (14 cents), Indiana (13 cents), Rhode Island (13 cents), Massachusetts (12 cents), Ohio (11 cents), West Virginia (11 cents), New Jersey (11 cents), New York (10 cents), New Hampshire (10 cents) and Maine (10 cents).
The top 10 least expensive markets are Mississippi ($3.10 per gallon), Louisiana ($3.13), Texas ($3.17), Georgia ($3.17), Arkansas ($3.19), Tennessee ($3.22), Alabama ($3.24), South Carolina ($3.25), Kentucky ($3.27) and Missouri ($3.32).