The national gas price average has been dropping slowly and steadily for the past 16-days. At $2.82, the national gas price average is the lowest since mid-September, but the cheaper gas prices may just be a temporary treat for motorists.
“Gas prices have been on the decline in recent weeks both nationwide and and in Virginia, however falling gas prices may soon be history,” said Tammy Arnette, Senior Public Affairs Specialist for AAA. “AAA anticipates an increase in gas prices ahead of the Nov. 4 Iran sanctions announcement and the mid-term elections.”
How expensive gas prices will be depends on how the market reacts to the early November events. However, motorists are not likely to pay summer prices this winter.
Today’s average is three cents less than last week, six cents cheaper than last month and 35- cents more expensive than this time last year.
At the close of Friday’s formal trading session on the NYMEX, WTI increased 26 cents to settle at $67.59. Crude prices ended last week with mostly losses, following release of EIA’s weekly petroleum report that showed crude inventories increased for the fifth consecutive week. Domestic crude inventories gained 6.3 million bbl to total 422.8 million bbl – a level not seen since the beginning of the driving season in June, according to EIA’s latest data. If this week’s EIA report shows another substantial build in total crude inventories, prices are likely to face more downward pressure. However, the potential price decline is likely to be short-lived, as U.S-imposed sanctions on Iran’s crude exports will take effect on Sunday, which may heighten fears in the market about reduced global supply amid growing global crude demand.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
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Chris Graham
