Press release from Automobile Association of Ameria:
Today’s national average price for a gallon of gasoline is $3.96, down 10 cents from one week ago. One year ago, the price was $3.18. The New York State average is $4.34, down 9 cents since last Monday. A year ago, the NYS average was $3.23. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia - $4.40 (down 5 cents from last week)
- Buffalo - $4.39 (down 7 cents from last week)
- Elmira - $4.36 (down 6 cents from last week)
- Ithaca - $4.50 (down 9 cents from last week)
- Rochester - $4.45 (down 9 cents from last week)
- Rome - $4.53 (down 10 cents from last week)
- Syracuse - $4.43 (down 8 cents from last week)
- Watertown - $4.57 (down 11 cents from last week)
On Thursday, the national average dropped below $4 per gallon for the first time since March 5. In the spring, oil prices spiked in reaction to Russia’s invasion of Ukraine, leading the national average to a new all-time high.
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.54 million b/d to 9.12 million b/d last week. However, the rate is 307,000 b/d lower than last year. Moreover, according to EIA, total domestic gasoline stocks decreased by 5 million bbl to 220.3 million bbl. Although gasoline demand has increased and supply has tightened, lower oil prices have helped lower pump prices. If oil prices continue to decline, drivers will likely continue to see pump prices decrease.
Crude oil prices rose slightly last week after the U.S. Bureau of Labor and Statistics reported a smaller than expected increase in inflation last month at 8.5 percent. The rise in market optimism helped to boost prices despite the EIA reporting that total domestic crude supply increased by 5.4 million bbl last week. Since then, crude prices have dropped back down and, as of this morning, range from $90 to $96 per barrel.
From Gas Buddy:
“For the ninth week straight, gas prices have continued to fall, but the streak is at great risk of being broken this week with wholesale gasoline prices having bounced back up some 40 cents per gallon as oil prices have rebounded," said Patrick De Haan, head of petroleum analysis at GasBuddy. "That means the decline in average prices could wrap up soon, with some price increases possible as early as this week, especially in areas of the Great Lakes. While the West Coast and some areas of the Rockies may see prices continue to drift lower, I do believe the national average could tick higher this week as the better than expected jobs report last week likely means less demand destruction than anticipated."
