AAA: Gas prices continue to fall

Gas prices continue on a steady downward trend in some parts of the state, and are basically holding steady nationwide.

The national average price for regular grade gasoline was $3.36 Friday.  This price is a penny higher than one week ago, 15 cents less than one month ago and 38 cents less than the same day last year, according to AAA Mid-Atlantic.

The national average price at the pump rose modestly the past two weeks, ending a streak of 36 consecutive daily declines – the longest run since 2008.  National pump prices have now declined 41 of the past 47 days (through Friday) and have fallen more than a quarter per gallon during this slide.

“AAA continues to expect that national gas prices will fall in the coming months due to sufficient supplies, flat demand and cheaper winter-blend gasoline,” said Martha M. Meade, Manager of Public and Government Affairs for AAA Mid-Atlantic. “However if crude oil prices remain elevated, it would provide a fundamental floor of how low gas prices can ultimately go. If crude oil prices drop below the $100 per barrel mark, the national average could fall to $3.10 to $3.20 per gallon by Christmas.”

As Meade hinted, the price of West Texas Intermediate crude oil has remained elevated above $100 per barrel.  The 16-day partial government shutdown had commodities (including crude oil) holding steady for the past few weeks. As the government reopened Thursday, crude oil was shaky, selling closer to the $100 per barrel mark.  Friday’s crude oil settlement of $100.81 (9 percent more than a year ago) compares to a national pump price of $3.36 (11 percent less than a year ago).

The last time WTI crude sold for less than $100 per barrel was on July 2 (the nationwide retail average then was just under $3.50 per gallon compared to $3.36 per gallon Friday). One year ago WTI settled at $91.85 per barrel – en route to a seasonal low of $84.86 on Nov. 2 – compared to a national average pump price of $3.79 per gallon the same day.

 

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)