AAA: Lower Pump Prices Seen as Demand, Oil Prices Fall
WASHINGTON, D.C. – The national average pump price fell nine cents over the past week to hit $3.79. It has dropped daily since October 11, primarily due to lower oil prices and fewer drivers than usual fueling up, according to the American Automobile Association (AAA).
“Global recession fears coupled with the Biden Administration’s plan to continue tapping the Strategic Petroleum Reserve into December has helped temper oil prices,” said Andrew Gross, AAA spokesperson. “This will help take the pressure off pump prices, benefitting drivers and their wallets.”
According to recent data from the Energy Information Administration (EIA), gas demand increased slightly from 8.28 million b/d to 8.68 million b/d last week. Total domestic gasoline stocks decreased marginally from 209.5 million bbl to 209.4 million bbl. Although gasoline demand is up slightly, it remains nearly 1 million bbl lower than this date last year. If demand remains low and oil prices don’t spike, pump prices will likely keep falling.
Today’s national average of $3.79 is nine cents higher than a month ago and 41 cents more than a year ago.
Source: https://rvbusiness.com/aaa-lower-pump-prices-seen-as-demand-oil-prices-fall/
