AAA Report: Gas Prices Keep Easing as Autumn Approaches
WASHINGTON, D.C. – Lower oil prices, modest domestic gasoline demand, and a quiet hurricane season are combining to drive pump prices lower, according to a report by the American Autombile Assocations (AAA). The national average for a gallon of gas fell seven cents in the past week to $3.77.
“According to weather analysts, it’s the first time in 25 years that a named Atlantic storm did not develop in August. That’s the good news,” said Andrew Gross, AAA spokesperson, “but we still have another month of peak hurricane season, and these storms can affect gas prices by disrupting oil production and refining.”
Meanwhile, oil prices dipped on recent lackluster Chinese manufacturing output due to lower demand for goods and new COVID‑19 outbreaks in critical industrial cities. This is fueling fears that oil demand could drop in China, the world’s largest importer of crude oil.
According to data from the Energy Information Administration (EIA), domestic gas demand increased slightly from 8.43 million b/d to 8.59 million b/d last week. However, the rate is nearly 1 million b/d lower than the last week of August 2021. Also, total domestic gasoline stocks decreased by 1.1 million bbl to 214.5 million bbl. Although gasoline demand rose and supply tightened, lower oil prices led to falling pump prices. If oil prices continue to decline, drivers will likely continue to see pump prices drop further.
Today’s national average of $3.77 is 31 cents less than a month ago but 59 cents more than a year ago.
Source: https://rvbusiness.com/aaa-report-gas-prices-keep-easing-as-autumn-approaches/
