Gas prices continue drop from June highs: Down now 27 days and counting

Gas prices have been going down nationally for 27 consecutive days, dropping 40 cents per gallon over the past four weeks. And it’s looking like the trend will continue.

“We may see the trend last a fifth week, as long as oil prices remain cooperative and don’t surge beyond $105 per barrel, and as long as refinery production of gasoline remains strong. But we’re not completely out of the woods yet – we could also see a sharp reversal in the decline. There remains risk of a spike in prices that could send us to new record levels in August, should any disruptions occur. It could be a wild ride, but for now, the plummet at the pump shall continue,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

The national average for a gallon of regular unleaded was down 12 cents over the past week, and in Virginia was down 14 cents per gallon.

This in the face of increased demand with travel for the July Fourth holiday.

According to new data from the Energy Information Administration, gas demand increased from 8.92 million b/d to 9.41 million b/d ahead of the 4th of July holiday, while total domestic gas stocks decreased by 2.5 million bbl. Typically, these supply/demand trends would put upward pressure on pump prices; however, falling oil prices have contributed to lower pump prices.

“Usually, more people buying gas would lead to higher pump prices,” AAA Mid-Atlantic spokesperson Morgan Dean said. “But the price for oil, the main ingredient in gasoline, has fallen and is hovering around $100 a barrel. Less expensive oil usually means less expensive gas.”