Press release from the Automobile Association of America:
Today’s national average price for a gallon of gasoline is $4.06, down 15 cents from one week ago. One year ago, the price was $3.19. The New York State average is $4.43, down 9 cents since last Monday. A year ago, the NYS average was $3.22. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia - $4.45 (down 4 cents from last week)
- Buffalo - $4.45 (down 6 cents from last week)
- Elmira - $4.42 (down 8 cents from last week)
- Ithaca - $4.59 (down 6 cents from last week)
- Rochester - $4.54 (down 7 cents from last week)
- Rome - $4.63 (down 7 cents from last week)
- Syracuse - $4.51 (down 7 cents from last week)
- Watertown - $4.68 (down 4 cents from last week)
According to the latest data from the Energy Information Administration (EIA), gas demand dropped recently to the point where it was in line with demand at the end of July 2020 when COVID-19 restrictions were in place. Meanwhile, stocks continue to rise while oil prices remain lower, which is leading to a drop in gas prices.
This morning, oil prices range from $89 to $95 per barrel. Crude prices have fallen as market concerns about weakening demand persist after the EIA reported that total domestic crude inventory increased. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group also known as OPEC+, announced plans to boost collective crude production by 100,000 barrels next month. However, the slight increase is unlikely to have a significant pricing impact – especially if demand continues to decline.
While overall demand has dropped in the U.S., we are seeing strong demand in New York as the summer travel season continues. Some states return to school earlier than this region, so their summer travel season is wrapping up. Also, new AAA consumer research shows that almost two-thirds of Americans have reduced their driving due to high gas prices.
From Gas Buddy:
"The national average is poised to fall back under $4 per gallon as early as today as we see the decline in gas prices enter its eighth straight week. By the end of the week, one hundred thousand stations will be at $3.99 or less," said Patrick De Haan, head of petroleum analysis at GasBuddy. "Diesel continues to decline as well, and will likely soon fall under $5 per gallon. We've even seen nearly a dozen stations in low-priced states fall under $2.99, a welcome return to some lucky motorists in areas of Texas, Oklahoma, Kansas and Iowa. The groundwork is laid for a ninth week of decline, with areas of the West Coast soon ditching the $5 per gallon average. While I'm upbeat the drop can continue for another couple weeks, we're starting to see some activity in the tropics, which may increase risk of potential disruption."
