Slack demand and the lower cost of oil are leading to savings at the gas pumps.
According to AAA East Central, gas prices are two cents lower this week at $3.901 per gallon in Western Pennsylvania. The average price of unleaded self-serve gasoline in Bradford is $3.762; in Brookville, $3.813; in DuBois, $3.887; in Erie, $3.936; and in Warren, $3.998.
Average gasoline prices in Pennsylvania have fallen 5.0 cents per gallon in the last week, averaging $3.81 per gallon Monday, according to GasBuddy’s survey of 5,269 stations in Pennsylvania. Prices in Pennsylvania are 2.7 cents per gallon lower than a month ago and stand 6.3 cents per gallon lower than a year ago. The national average price of diesel has fallen 4 cents in the last week and stands at $4.48 per gallon.
According to GasBuddy price reports, the cheapest station in Pennsylvania was priced at $3.15 per gallon Monday while the most expensive was $4.79 per gallon, a difference of $1.64 a gallon.
The national average price of gasoline has fallen 10.2 cents per gallon in the last week, averaging $3.67 per gallon Monday. The national average is down 13.8 cents per gallon from a month ago and stands 25 cents per gallon lower than a year ago, according to GasBuddy.
“At long last, the decline in gas prices that we’ve been waiting to see has arrived, and the locomotive of falling prices has only recently started on a downhill, gaining momentum,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
“However, some new caution signs have emerged with the recent attacks on Israel, potentially destabilizing a sensitive region. I’m hopeful the violence won’t spread, limiting the impact to these falling gas prices. Even with oil prices rising as a reaction to the attacks, I remain optimistic the national average could decline another 25to 45 cents by late November, with prices falling potentially nearly triple that in California,” said De Haan. “Even the price of diesel has seen downward pressure with oil prices plummeting last week on fears that the Fed will be forced to continue raising rates, eating into demand growth, leading a barrel of crude to drop into the mid-$80s, but we remain concerned about a potentially destabilized Middle East and the potential impact to oil prices should the region see violence escalate.”
According to new data from the Energy Information Administration (EIA), gas demand dropped significantly from 8.62 to 8.01 million barrels per day last week. On the other hand, total domestic gasoline stocks increased substantially by 6.5 million barrels to 227 million barrels. Growing supply, amid low demand, has pushed pump prices down.
At the close of last Wednesday’s formal trading session, West Texas Intermediate decreased by $5.01 to settle at $84.22. Oil prices fell sharply due to rising market concern that if interest rates continue to increase, the economy could tip into a recession. If a recession occurs, crude demand and prices would likely drop. Additionally, the EIA reported that total commercial crude stocks decreased by 2.2 million barrels to 414.1 million barrels last week.
