Gas Prices Decline Despite Unrest in the Middle East
WASHINGTON, D.C. — Domestic pump prices maintained their daily decline despite the uncertainty rippling through the oil market in the days since Hamas terrorists attacked Israel.
[Read more: AAA: Relief at the Pump Could Be Coming]
According to AAA, though oil prices have risen a few dollars per barrel this week, it's far from the roughly $40 per barrel temporary spike following last year's Russian invasion of Ukraine. This is likely due to Russia's position as a significant oil producer, which Israel and the Palestinian territories are not.
Overall, the national average for a gallon of gas fell 12 cents since last week to $3.64. That brings the average cost of a gallon of gas to 19 cents less than a month ago and 28 cents less than a year ago.
"As long as this war does not spread to include more countries in the region, the effect on the oil market will remain muted," said Andrew Gross, AAA spokesperson. "Here in the U.S., there are now nine states with some county gas averages below $3 a gallon, and this number will likely increase in the coming weeks."
According to new data from the Energy Information Administration (EIA), tepid demand, alongside descending oil prices, has pushed pump prices lower. If oil prices continue to decline, drivers can likely expect further price drops at the pump in the weeks ahead. Additionally, total commercial crude stocks increased significantly by 10.1 million barrels to 424.2 million barrels last week, EIA reported.
[Read more: Gas Prices Rise as Summer Temperatures Heat Up]
Since last Oct. 5, these 10 states have seen the largest decreases in their averages: California (23 cents), Nevada (19 cents), Arizona (18 cents), Iowa (16 cents), Indiana (-16 cents), Texas (15 cents), Oklahoma (15 cents), Michigan (15 cents), Minnesota (15 cents) and Washington (14 cents).
The nation's current top 10 least expensive markets are: Georgia ($3.10), Mississippi ($3.11), Texas ($3.14), South Carolina ($3.16), Alabama ($3.16), Delaware ($3.17), Louisiana ($3.18), Tennessee ($3.19), Ohio ($3.21) and Arkansas ($3.23).