(WASHINGTON, May 14, 2012) Declining crude oil prices and renewed economic concerns have pressured the national average gas price steadily lower since early April.  The national average price at the pump has now declined for 28 consecutive days and is 21 cents lower than the April 6 peak of $3.94.  This streak of declining prices is the longest since 2010, when prices dropped 21 cents from May 7 to June 3.  If the current streak is extended tomorrow, it will be the longest streak since 2009, when prices declined 23 cents from June 22 to July 21. 

Today’s national average price for a gallon of regular self-serve gasoline is $3.73.  This is five cents cheaper than the price one week ago, 17 cents cheaper than one month ago and 24 cents cheaper than one year ago. 

A decline in the price at the pump has not been seen west of the Rocky Mountains, where tight gasoline inventories have sent prices higher even as crude oil prices and retail gas prices across the rest country have moved lower.  While it is not unusual for gasoline stocks to decline at this time of year, as refineries undergo maintenance and the switchover from winter-blend to summer-blend gasoline takes place, current West Coast stocks, as reported last week by the Department of Energy, are at their lowest level since 1992.  While 46 states and the District of Columbia have seen their price at the pump decline since April 14, Alaska (3.4 cents), Washington (7.1 cents), Oregon (8.5 cents), and California (11.6 cents) have seen prices increase.  A full state-by-state list of month-over-month price changes is included below.

At the close of formal trading on the NYMEX today, West Texas Intermediate (WTI) crude oil settled down $1.35 at $94.78 per barrel.  This is the lowest settlement price since December 19, 2011.  Today’s declines were attributed to continued global economic concerns.  Traders remain particularly focused on the euro zone, where Greek elections and a possible withdrawal from the currency following austerity measures to address sovereign debt worries have weighed on economic growth and markets.  A weakening global economy would be expected to consume less crude oil, which puts downward pressure on prices.  Furthermore, as economies overseas weaken relative to the U.S., the value of the dollar is expected to strengthen by being viewed as a “safer” currency.  As this happens, crude oil futures, priced in U.S. dollars, become relatively more expensive and thus a less attractive investment, which puts additional downward pressure on prices.

These same global economic concerns pressured oil prices lower last week as Chinese industrial data failed to meet expectations and political news from Europe was viewed as bearish by market analysts.  While U.S. consumer confidence was reported on Friday as increasing — in part due to falling gasoline prices in most regions — the broader global concerns weighed on U.S. commodities and equities markets alike as the Dow Jones Industrial Average posted its largest weekly loss of 2012.

The above information is intended to provide perspective on fuel prices to AAA club spokespersons in speaking to the news media or in preparing news releases.  If you have questions about any information contained in this document, do not hesitate to contact Michael Green at (202) 942-2082.