The temperature is falling, leaves are falling and so is the price of gasoline.
On Monday, AAA East Central said the average price in Western Pennsylvania was $3.807 per gallon, while in Bradford, it was $3.765; in Brookville, $3.760; in DuBois, $3.854; in Erie, $3.815; and in Warren, $3.832.
Despite global tensions causing ripples through the oil market, the national average for a gallon of gas is maintaining its annual autumn dip, falling 6 cents since last week to $3.54, according to AAA. Monday’s national average is 31 cents less than a month ago and 25 cents less than a year ago.
The national average price of diesel has risen 3.8 cents in the last week and stands at $4.48 per gallon.
“As air temperatures trend downward as we progress into fall, gasoline prices have seen another week of their own seasonal fall. The national average is on the cusp of falling to the lowest level since March, something that could happen this week,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
“Demand for gasoline continues to weaken as we get closer to seeing the first snow flurries fly across some areas of the country, and against the backdrop of winter, there isn’t as much desire to get out,” he continued. “Coupled with cheaper winter gasoline and refinery issues that have faded to the rearview thanks to the drop in demand, gasoline prices have been weakening even as oil prices have climbed, putting pressure on refineries as margins flatten and gasoline becomes the unwanted byproduct of producing other products like diesel and jet fuel, which command a higher price than gasoline.
“However, there’s only so much refineries can do, because they must produce gasoline at high quantity to get those premium barrels. For now, that trend will likely mean further declines in the weeks ahead, before prices bottom out between Thanksgiving and Christmas.”
According to the most recent data from the Energy Information Administration (EIA), gas demand increased from 8.58 to 8.94 million b/d last week. On the other hand, total domestic gasoline stocks decreased by 2.4 million barrels to 223.3 million barrels.
Although higher demand and tightening supply typically increase pump prices, stabilized oil prices have had the opposite effect. At the close of last Wednesday’s formal trading session, West Texas Intermediate remained unchanged at $86.66. Earlier in the week, the price of oil rose due to concerns that the Israel-Hamas war could lead to reduced oil output from countries in the region, but those concerns have subsided for now.
