News from AAA: Average gas price dips slightly ahead of holiday week
Gasoline prices are a little lower after a tumultuous week for oil and gas markets that ultimately ended with sharply lower crude oil prices and less pressure on prices at the pump. This is good news for drivers heading into the Fourth of July holiday travel period, as local pump prices remain considerably lower than this time last year.
With virtually all the crude oil price increases stemming from Middle East tensions evaporating from petroleum markets by the middle of last week, the focus for commodities traders shifted to domestic supply and demand readings that show demand for gasoline continues to increase — but supplies remain strong as well.
The Energy Information Administration last week reported a third straight weekly increase in gasoline demand, which rose nearly 400,000 barrels a day over the prior week to 9.1 million barrels per day, in line with expectations for strong demand typically seen in early summer.
That higher demand was a factor in national inventories of gasoline declining by 2.1 million barrels in total, according to the EIA, which might put additional upward pressure on pump prices. But in the Northeast, regional inventories actually increased by just over 2 million barrels, bucking the national trend. Regional supplies are now up 3.2 million barrels over last year and comfortably positioned ahead of the July 4 holiday and the next few peak weeks of the summer driving season.
“Recent geopolitical events showcased the volatile nature of oil and gas markets, but right now supply and demand are the primary factors impacting how much it costs to fill our tanks,” said Robert Sinclair of AAA Northeast. “While regional pump prices are up slightly from a month ago, they remain more than 40 cents lower per gallon than this time last year — great news for those heading out for Fourth of July road trips.”
AAA Northeast’s June 30 survey of fuel prices found the average for a gallon of regular in New York City $3.21, a penny lower than a week ago. The price is 42 cents less than a year ago. Long Island averages $3.13, Connecticut $3.17 and New Jersey also $3.17.
The current national average is down 4 cents from last week averaging $3.18 per gallon. Today’s price is 31 cents lower than last year ($3.49).
Today, Mississippi and Oklahoma have the lowest prices in the nation at $2.71 and $2.73, respectively. California and Hawaii hold the highest prices in the nation this week at $4.59 and $4.47, respectively.
AAA Northeast is a not-for-profit auto club with offices in Rhode Island, Massachusetts, Connecticut, New Jersey, New Hampshire and New York, providing nearly 6.8 million local AAA members with travel, insurance, financial and auto-related services.
