Archive for the ‘Fuel’ Category

Gas Price Slide Reaches 19 Days

August 3rd, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, August 3, 2015) The resolution of localized refinery issues and lower prices for crude oil has kept downward pressure on the national average price at the pump, which has fallen for 19 consecutive days. Today’s national average price for regular unleaded gasoline is $2.65 per gallon, down six cents versus one week and 12 cents versus one month ago. Drivers are paying the lowest averages for this date since 2009, and today’s national average represents a savings of 85 cents per gallon compared to this same date last year. The national average is now 15 cents per gallon lower than the 2015 peak price of $2.80 on June 15.

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The national average has steadily dropped, yet volatility continues to characterize several regional markets due to unexpected drawdowns in supply. While some states may not experience significant price drops as a result of regional supply and distribution issues, the national average is expected to keep moving lower leading up to the Labor Day holiday, barring any unexpected spikes in the price of global crude oil or unexpected disruptions to domestic production.

Pump prices west of the Rockies remain the most expensive in the nation and all seven states with averages above $3 per gallon are located in this region. Drivers in California ($3.74) are paying the nation’s highest averages for retail gasoline and are followed by Alaska ($3.48), Hawaii ($3.28), Nevada ($3.24) and Washington ($3.17) as top five most expensive markets for motorists. Although prices on the West Coast appear to be easing, retail averages remain volatile based on shifts in supply and demand. Alabama ($2.266) is the nation’s least expensive market, unseating South Carolina ($2.269) by fractions of a penny.

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With the exception of Indiana (+2 cents) and Alaska (+1 cents), pump prices are down in every state and Washington, D.C. over the past week. The largest discounts in price are seen in Ohio (-14 cents), Kansas (-11 cents) and Minnesota (-11 cents), while consumers in 24 states and Washington, D.C. are enjoying weekly saving of a nickel or more per gallon.

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The majority of drivers (39 states and Washington, D.C.) are paying less to refuel their vehicles month-over-month. Averages are down by a dime or more per gallon in 30 states and Washington, D.C., with the most dramatic savings in the Midwest: Ohio (-41 cents), Michigan (-38 cents), Indiana (-37 cents) and Illinois (-31 cents). Production issues had driven prices higher in this region over the past several months, and following their resolution, prices have fallen as supply and demand have returned to balance. On the other end of the spectrum, prices in 11 states have moved higher over this same period due to the lingering impact of refinery issues. Motorists in California (+30 cents) and Colorado (+13 cents) are paying the largest premiums compared to one month ago.

The average price for retail gasoline remains significantly discounted versus this same date last year. Motorists nationwide are paying less to refuel their vehicles, and prices are down by 75 cents per gallon or more in the majority of states (41 and Washington, D.C.). Year-over-year prices are down by $1 or more in five states, with the largest savings at the pump being enjoyed by drivers in Ohio (-$1.17) and Hawaii (-$1.06).

The global price of crude oil continues to sink on expectations that the market will remain oversupplied in the near term. Recent reports suggest that Chinese manufacturing has fallen to its lowest level in two years, which may signal that this important driver of global consumption is poised for less than anticipated economic growth. Weaker growth means lower than projected oil demand, which could further increase the glut in global petroleum supplies. Reports that Iran is planning to increase oil output when sanctions are lifted, combined with the U.S. increasing its rig count, has also contributed to major crude benchmarks (Brent and West Texas Intermediate) opening this week’s trading session at multi-month lows.

At the close of Friday’s formal trading on the NYMEX, WTI closed down $1.40 at $47.12 per barrel – a product of late selling on the heels of news that U.S. oil rig counts were up for the second week in a row. The market’s fundamentals are characterized as weak, and last week’s lows are expected to be tested over the next seven days.

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.

Longest Gas Price Decline Since January

July 27th, 2015 by KerrieNew

Michael Green Contact Tile(WASHINGTON, July 27, 2015) The national average price for regular unleaded gasoline has dropped for 12 days in a row, which is the longest consecutive decline since January. Today’s national average price is $2.71 per gallon, which is a nickel per gallon less than one week ago and seven cents less than one month ago. Most drivers are paying the lowest July prices since 2009 and are saving 82 cents per gallon at the pump compared to a year ago.

 

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The slow decline in the national average is in stark contrast to regional price volatility that continues to characterize some markets, as a result of localized refinery issues and tight supplies. Pump prices have moved dramatically higher in California this month due unexpected drawdowns in supplies, shortages in the blending components used to make the state’s mandated boutique fuel and recent reports of several refineries dealing with production issues. On the other end of the spectrum, production at refineries in the Midwest is reported to have reached a 2015 high and prices have subsequently moved noticeably lower in much of the region.

Drivers in seven states, all located west of the Rockies, are paying retail averages above $3 per gallon. California ($3.83) is the nation’s most expensive market for retail gasoline, and is followed by regional neighbors Alaska ($3.47), Hawaii ($3.32), Nevada ($3.26) and Washington ($3.19). Averages in California appear to be easing, although recent reports of production issues could again send averages higher in the coming days. The nation’s least expensive market for retail gasoline is South Carolina ($2.32), where pump prices remain discounted by more than $1.50 from the market leader.

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Weekly price comparisons show the majority of drivers (43 states and Washington, D.C.) are saving at the pump. The price is down a dime or more in Ohio (-17 cents), Indiana (-12 cents), Kentucky (-12 cents) and Michigan (-10 cents), and motorists in a total of nine state are saving a nickel or more per gallon week-over-week. Retail averages climbed higher in seven states over this same period, but in less dramatic fashion. Colorado (+5 cents) is the only state posting a weekly premium of a nickel or more per gallon.

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Pump prices have moved lower in 34 states and Washington, D.C. month-over-month. Averages in the majority of these states (31) are down by a nickel or more per gallon, and the largest monthly discounts continue to be seen in Ohio (-38 cents), Indiana (-37 cents) and Michigan (-29 cents) following the resolution of production issues in the Midwest region. Consumers in 17 states are saving a dime or more per gallon. The price has moved higher in 16 states over this same span, with the largest price jumps in California (+38 cents), Colorado (+14 cents) and Arizona (+10 cents).

Nationwide, consumers are experiencing significant discounts in the price for retail gasoline compared to one year ago. Motorists in 38 states and Washington, D.C. are saving 75 cents or more per gallon, and pump price are down by $1 or more in Connecticut (-$1.04), Hawaii (-$1.02) and Vermont (-$1.00) year-over-year.

The global oil market touched multi-month lows to open the week’s trading session in reaction to signals that the market is likely remain oversupplied in the near term, which is expected to keep downward pressure on prices. Worse than expected economic data out of China showed growth in the country to be more volatile than anticipated, which could further increase the global glut in oil and gasoline.

Domestic crude inventories grew by 2.5 million barrels in the most recent weekly report, while the number of U.S. oil rigs grew by 21, which was the largest gain since April 2014. Supply continues to outpace domestic demand, and as a result, West Texas Intermediate crude oil fell below $50 per barrel for the first time since April this past week.

At the close of Friday’s formal trading on the NYMEX, WTI settled down 31 cents at $48.14 per barrel. Losses continued this morning as WTI was down in early trading to below $48 per barrel. The price of oil generally accounts for more than half the cost of retail gasoline at the pump, so lower crude oil prices typically lead to lower pump prices for motorists, barring other influencing factors like refinery issues, distribution challenges or changes in 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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Michael Green Contact Tile(WASHINGTON, July 20, 2015) Despite regional volatility, the national average price for regular unleaded gasoline has remained relatively stable over the past 30 days. Today’s average price of $2.76 per gallon represents the lowest average for this date since 2010 and is down nearly a nickel per gallon compared to the 2015 peak price reached on June 15 ($2.80). National pump prices have slowly pulled back from this peak with averages down by one cent per gallon versus one week ago and four cents per gallon versus one month ago. The national average is 82 cents per gallon less than a year ago.

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The relatively stable national average continues to disguise volatility in select markets. Drivers in California are paying the highest averages since August 2014, largely due to imbalances between gasoline supply and demand. A lack of imports and the blending components used to make CARBOB, the state’s mandated specialty fuel, are also reported to be dwindling and retail averages are expected to remain high. Ongoing refinery problems, particularly at the ExxonMobil facility in Torrance, also are playing a significant role in California’s gas prices. On the other end of the spectrum, averages in parts of the Great Lakes region are moving lower in dramatic fashion following the resolution of regional supply issues.

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California ($3.87) remains the nation’s most expensive market for retail gasoline, due supply difficulties. Bi-weekly price comparisons show pump prices that have spiked 44 cents per gallon, however prices have leveled off over the weekend and are down fractions of a penny since Friday. Regional neighbors Alaska ($3.47), Hawaii ($3.34), Nevada ($3.26) and Washington ($3.19) round out the top five most expensive markets for retail gasoline. Consumers in South Carolina ($2.37) and Alabama ($2.41) are paying the lowest prices at the pump – both discounted by nearly $1.50 per gallon compared to market leader California.

Pump prices across much of the country have remained relatively stable week-over-week, with prices moving by +/- 3 cents in 25 states and Washington, D.C. Weekly comparisons reflect double-digit movements in a handful of states, though fluctuations are less dramatic than in previous price reports. Consumers in California (+16 cents) and Minnesota (+11 cents) have seen the largest price increases, and are joined by 13 other states where the price has climbed higher over this same period. Pump prices have fallen in 35 states and Washington, D.C., with motorists in Ohio, Indiana and Michigan all saving 12 cents per gallon.

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Retail averages are down in 32 states and Washington, D.C. month-over-month, and 12 states are posting double-digit savings over that time. Motorists in Indiana (-25 cents), Michigan (-18 cents) and Illinois (-17 cents) are experiencing the largest monthly discounts, and the price is down by a nickel or more per gallon in 30 states. Retail averages climbed higher in 18 states over this same period and drivers in three states are paying a dime or more per gallon: California (+38 cents), Arizona (+11 cents) and Idaho (+10 cents).

Significant yearly savings persist across the country, and with the exception of California (-17 cents), prices are down 50 cents or more in every state and Washington, D.C. Connecticut ($1.03) is the only state with an average price discounted by more than $1 per gallon and motorists in 42 states and Washington, D.C. are saving 75 cents or more at the pump.

This week’s trading session opened to news of falling oil rig counts in the U.S. and reports that Saudi Arabian oil exports fell to a five-month low this past May. Historically, either of these factors could have led to higher prices. However, neither factor has notably shifted market fundamentals today, as the lower rig count has been countered by reports that that U.S. production remains high and lower Saudi Arabian oil exports have been attributed to higher gasoline production in that country, rather than a decrease in oil production.

Following the nuclear deal that was reached last week between Iran and China, France, Russia, the United Kingdom, the United States and Germany (the P5+1), the prospect for Iranian crude oil to return to the global market also remains top of mind for market watchers. Iran is home to the world’s fourth largest oil reserves and prior to sanctions was one of OPEC’s largest producers. Although the timeline for the possible return and at what quantity remains in question, downward pressure is expected to remain on global oil prices as a result of the news.

At the close of Friday’s formal trading on the NYMEX, WTI tested the $50 per barrel mark and closed down two cents at $50.89 per barrel.

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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California Gas Prices Skyrocket

July 13th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, July 13, 2015) Today’s national average price for regular unleaded gasoline is $2.77 per gallon. The average is just fractions of a penny more than a week ago and is at the lowest mark for this date in nearly five years. The steady national average obscures dramatic weekly price movement in several states including California (+28 cents) Indiana (-12 cents) and Michigan (-11 cents).

Nationally, the retail average has fallen for 19 of the past 30 days and is three cents per gallon less than the 2015 peak price of $2.80 per gallon (June 15). Many consumers continue to save at the pump with national prices down three cents per gallon month-over-month, and yearly comparisons show the full extent of savings with an 85 cent per gallon discount.

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Drivers in California are once again weathering sharp increases in gas prices due to reports of tightening supply in the state. The state average has climbed by 22 cents per gallon since Friday and drawn the attention of the California Energy Commission, which is now investigating the fundamentals behind this most recent spike. Early reports indicate that the despite refineries exceeding last year’s production rates, higher than expected demand for gasoline has resulted in significant drawdowns in supply and distribution systems have been unable to keep pace. Suppliers often operate in “just-in-time” gasoline inventories—supply is delivered only as demand requires—which limits storage costs, but can lead to significant spikes in price when supply and demand are out of balance. Upward pressure is likely to remain on prices in the region until supply issues are resolved.

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On the heels of this price surge, California ($3.72) is once again the nation’s most expensive market for retail gasoline. The state is followed by regional neighbors: Alaska ($3.47), Hawaii ($3.34), Nevada ($3.25) and Washington ($3.20) as the top five most expensive markets for retail gasoline. On the other end of the spectrum, motorists in South Carolina ($2.41) and Mississippi ($2.46) are paying the least to refuel their vehicles.

While a handful of states have seen prices rising and falling sharply, pump prices have been relatively stable across much of the country over the past seven days, moving by +/- 2 cents in 42 states and Washington, D.C. Averages are down in 30 states week-over-week, with prices in Indiana and Michigan reflecting the only double-digit savings. Drivers in 20 states and Washington D.C. have seen prices climb higher over this same period.

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Month-over-month prices are down in 33 states, with the largest savings in the Midwest: Indiana (-26 cents), Michigan (-13 cents), Ohio (-10 cents) and Illinois (-10 cents), largely due to the resolution of lingering refinery issues in the region. Retail averages moved higher in 17 states and Washington, D.C., over this same period, led by California (+17 cents), Idaho (+11 cents) and Washington (+11 cents). A total of seven states are paying a nickel or more per gallon than a month ago.

Consumers in every state and Washington, D.C. continue to enjoy significant yearly discounts in the price for retail gasoline. Pump prices are down 75 cents or more in 44 states and Washington, D.C., and drivers in Connecticut (-$1.04) and Hawaii (-$1.00) are saving $1 or more per gallon in comparison to this same date last year.

Domestic supply factors continue to influence gas prices in some states. However, lower global crude oil prices are contributing downward pressure on gasoline prices across the nation. The impact of the Greek debt crisis and diplomatic negotiations with Iran pushed the price of West Texas Intermediate crude oil to multi-month lows over the past week. Greece’s default on its International Monetary Fund loans has fueled concerns regarding the impact on other Eurozone economies. A reported agreement in Brussels today could alleviate these concerns, but political considerations in Greece remain front and center for market watchers. Negotiations with Iran are reportedly nearing a conclusion and could include the lifting of sanctions that would return Iranian crude oil to an already oversupplied global market. Both international events have the potential to put additional downward pressure on price and contribute to the oversupply that currently characterizes global oil markets.

After temporarily dropping below the $52 per barrel mark during Friday’s trading session, WTI prices recovered most of their losses at the close of formal trading on the NYMEX to close the week down four cents at $52.74 per barrel.

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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Michael Green Contact Tile(WASHINGTON, July 6, 2015) Motorists paid the lowest price at the pump for Independence Day travel since 2010, saving 90 cents per gallon compared to the 2014 holiday. Today’s national average price for regular unleaded gasoline is $2.77 per gallon, down fractions of a penny versus one week ago. The national average price remained relatively steady over the past 30 days, despite regional fluctuations in price due to refinery issues, and today’s average represents an increase of one cent per gallon versus one month ago. Pump prices remain considerably discounted year-over-year, with drivers saving 89 cents per gallon compared to this same date last year.

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During July 2014, averages fell on all but one day during the month, for a total drop of 16 cents per gallon. Despite the decline in recent weeks, the direction of pump prices in the near term is less than certain. Consumer demand for gasoline typically climbs during July and August, and the ability of supply to keep pace with growing demand can directly impact the price at the pump. Additionally, retail averages can also be impacted by Atlantic hurricanes or issues at refineries, both capable of limiting supply and putting upward pressure on prices for drivers. While these domestic factors could influence gas prices higher, the relatively low price of crude oil is expected to keep a ceiling on the price at the pump compared to recent years. AAA still expects drivers to pay averages below $3 per gallon for the rest of the year.

Pump prices west of the Rockies continue to lead the nation with the only state averages higher than $3 per gallon. For the second week in a row motorists in Alaska ($3.48) are paying the nation’s highest price for retail gasoline. The Last Frontier is followed by regional neighbors California ($3.44), Hawaii ($3.37), Nevada ($3.20) and Washington ($3.20) as the nation’s top five most expensive markets. South Carolina ($2.43) and Mississippi ($2.47) are posting the nation’s lowest averages, discounted by more than $1 per gallon from the market leader.

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Weekly price comparisons reflect drivers in 36 states and Washington, D.C. experiencing savings at the pump. Of the 14 states where the price has moved higher over this same period, 12 states are posting premiums of two cents per gallon or less. On the whole, the average price for retail gasoline has remained relatively stable, week-over-week, moving +/- 3 cents per gallon in the majority of states (47) and Washington, D.C. Three states located in the midcontinent region are outside of this trend: Ohio (-10 cents), Idaho (+7 cents) and Michigan (+6 cents) – the fluctuations in price are largely attributed to supply and demand remaining out of balance within the region following refinery issues in recent months.

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Despite the national average remaining relatively stable over the past 30 days, the lingering effects of regional refinery issues continue to be reflected in monthly price comparisons at the state level. The price has climbed higher in 37 states and Washington D.C. month-over-month, with the largest price movements in regions previously facing issues at major refineries. A total of seven states are posting double-digit increases over this period, led by Michigan (+22 cents), Idaho (+13 cents) and Washington (+13 cents). On the other end of the spectrum, prices are down in 13 states versus one month ago. Prices in California (-18 cents) and Nevada (-7 cents) have fallen by more than one nickel per gallon over this same period due to the earlier resolution of refinery issues in California.

Nationwide, drivers are enjoying significant discounts in the price for retail gasoline versus this same date last year. Consumers in Connecticut (-$1.04) and Washington D.C. (-$1.01) are saving more than $1 per gallon at the pump, and drivers in the vast majority of states (45 and Washington, D.C.) are posting yearly discounts of more than 75 cents per gallon.

International considerations remain front and center for oil prices, due to their potential to impact both global supply and nations’ demand for crude oil on the global market. Over the weekend Greece voted ‘no’ on a referendum over debt bailout terms, which is seen as the latest signal that the country could exit the Eurozone following its recent default on loans from the International Monetary Fund. This news puts substantial pressure on the value of the Euro and subsequently adds further strength to the U.S. dollar. A stronger U.S. dollar makes crude oil (priced in U.S. dollars) relatively more expensive for those holding other currencies, which lowers demand and pressures prices lower.

The NYMEX was closed last Friday in observance of the Independence Day holiday, and on Thursday West Texas Intermediate crude oil settled down three cents at $56.93 per barrel, reaching its lowest finish since April. Losses continued when markets reopened this morning, and prices were driven lower by the results of the Greek vote over the weekend. Shortly after the open this morning WTI had dropped $2.50 per barrel.

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.

Michael Green Contact Tile

 

 

 

 

 

(WASHINGTON, June 30, 2015)

Americans Have Saved $65 Billion on Gas During First Six Months of the Year

  • Lower prices have helped Americans save about $65 billion on gas so far this year, compared to the first six months of 2014, which is more than $530 for every U.S. household on average. Today’s national average price of gas is $2.77 per gallon, which is the lowest average for this date since 2010 and about 91 cents per gallon less than a year ago.
  • “It is much easier for a driver to take a summer road trip knowing that they have saved hundreds of dollars on gas so far this year,” said Avery Ash, AAA spokesman. “The gas savings should continue for the rest of the summer, which could help motivate millions of Americans to travel.”
  • AAA expects 41.9 million Americans will travel 50 miles or more for Independence Day, which is the highest total since 2007. About 35.5 million people will travel by car for the holiday. Most drivers should pay the lowest gas prices for Independence Day in at least five years.
  • S. gas prices have averaged $2.45 per gallon this year, which is the cheapest average for the first six months since 2009. During the first six months of 2014, gas prices averaged $3.52 per gallon.
  • Americans are driving more this year due to lower gas prices and a stronger economy. Gasoline demand for the first six months of the year is up about three percent compared to the same period in 2014, according to initial estimates by the Energy Information Administration. Summertime demand is even higher with the current four-week average about 4.5 percent higher than a year ago.
  • Gas prices averaged $2.78 per gallon in June, which was the lowest average for the month since 2010. By comparison, the average price of gas in June 2014 was $3.67 per gallon.
  • Gas prices remained relatively steady in June with the national average finishing the month only about three cents per gallon higher than at the beginning of the month. U.S. average gas prices are about 74 cents per gallon higher than the lows in late January.
  • Average U.S. prices reached a 2015 high of $2.80 per gallon on June 15. If this remains the highest average of the year, it would be the cheapest peak price since 2009.
  • The cost of West Texas Intermediate crude oil remained stable in June with the price settling within a relatively narrow range of $58.00-$61.26 per barrel, which has helped to prevent significant changes in the national average price of gasoline.
  • The average price of diesel is only eight cents per gallon more than gasoline today. The difference between gasoline and diesel reached its most narrow point since 2009 in June, due in part to a late peak in gas prices and seasonal factors that help reduce the cost of diesel in the summer. In January, the average price of diesel was 90 cents more expensive per gallon than gasoline.
  • Gasoline costs less than in recent years because of significantly lower crude oil costs. Crude oil remains about $50 per barrel cheaper than the highs reached in summer 2014.

 

Gas Prices May Drop this Month Due to Rising Production

  • The national average price of gas is likely to remain less than $3 per gallon this year, but there is considerable uncertainty regarding the future direction of prices. It is possible that gas prices this month will drop or at least remain relatively flat in the near term as gasoline production increases to take advantage of high profit margins. Oil prices similarly should remain near current levels given that domestic, commercial supplies are about 19 percent higher than a year ago. Nevertheless, factors such as strong summertime demand or other unexpected events could send gas prices higher.
  • “Drivers are hoping that history repeats last year’s dramatic selloff in gas prices during the second half of the summer,” continued Ash. “There is real possibility that gas prices will drop this month as millions of Americans hit the roads for their summer vacation.”
  • Fuel demand is likely to be a key factor in whether gas prices drop or increase this summer. July and August are generally the two months with the highest level of U.S. driving, which could affect supplies and prices. If gasoline stocks decline due to strong demand, it is likely that gas prices will rise. Demand generally drops significantly after Labor Day, which leads to lower gas prices in the fall.
  • There are a number of unexpected factors that could send summertime gas prices even higher than today, such as increased fighting in the Middle East, unexpected problems at major refineries or strong Atlantic hurricanes that disrupt refinery production.
  • Two international events taking place this week could help lower petroleum prices this year. First, negotiators are working on an Iranian nuclear deal, which could lead to abundant supplies of Iranian crude oil entering the markets later this autumn. Second, the effects of Greece defaulting on its debts could weaken the global economy and reduce fuel demand. Similarly, problems in Europe could lead to a stronger dollar, which generally results in lower oil prices.
  • It can be relatively common for gas prices to increase in July as more Americans take long, summer road trips. For example, gas prices increased by an average of 16 cents per gallon during the month from 2011-2013.
  • Average U.S. gas prices in July 2014 dropped for 30 out of 31 days for a total of 16 cents per gallon, due to abundant petroleum supplies worldwide. This decline was the start of an eventual $1.65 per gallon drop through January.

 

Alaska Tops Most Expensive States for Gas for the First Time Since 2011

  • Alaska because the most expensive state for gas in the country on June 27 for the first time since 2011. The five most expensive state averages include: Alaska ($3.48), California ($3.44), Hawaii ($3.38), Washington ($3.20) and Nevada ($3.19).
  • The states with the lowest average gas prices include South Carolina ($2.44), Mississippi ($2.48), Alabama ($2.50), Arkansas ($2.50) and Tennessee ($2.54).
  • About 13 percent of U.S. stations are still selling gas for more than $3 per gallon. A year ago, 99.99 percent of stations were selling gas above that price. About 15 percent of U.S. stations are still selling gas for less than $2.50 per gallon, which is about half as many as a month ago.
  • The most common price in the country today is $2.599 per gallon, which compares to $3.599 per gallon a year ago.

 

One-in-Three Americans Doubt Accuracy of Fuel Economy Ratings

  • A recent AAA survey found that 1-in-3 Americans do not believe the Environmental Protection Agency’s (EPA) new-vehicle window stickers accurately reflect real-world fuel economy.
  • AAA’s comprehensive analysis of fuel economy data submitted to the EPA’s website revealed that more than 80 percent of drivers reported fuel economy higher than the combined city and highway EPA mileage rating for their vehicle.
  • AAA independently tested three vehicles that were frequently reported as failing to achieve the EPA fuel economy and determined the EPA mileage ratings were accurate.
  • AAA concludes that driving behaviors, vehicle condition, driving environment and terrain are likely responsible for most deviations from EPA ratings that consumers experience.

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.

AAA updates fuel price averages daily at www.FuelGaugeReport.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

For more information, contact Michael Green at 202-942-2082, mgreen@national.aaa.com.

Gas Prices Ease Approaching July 4 Holiday

June 29th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, June 29, 2015) Despite rising prices over the past several months, drivers are poised to pay the lowest prices at the pump over the Fourth of July holiday weekend in at least five years. Today’s average price of $2.77 per gallon is down two cents versus one week ago and down three cents from the peak price to date for 2015, which was set on June 15. While pump prices are down on the week, they are up four cents per gallon month-over-month, largely due to regional refinery issues that put upward pressure on the national average over the last 30 days. Gas prices continue to reflect considerable yearly discounts with drivers saving an average of 90 cents per gallon versus this same date last year.

2012-2015_Avg Gas Prices

Pump prices often fall leading up to the Independence Day holiday. However, a seasonal decline in the national average this year has been offset by supply shortages due to localized refinery issues and global crude prices that have recovered from multi-year lows this spring.

Drivers in the Pacific Northwest are paying some of the nation’s highest prices for retail gasoline. After 16 consecutive weeks, Alaska ($3.47) has unseated California ($3.45) as the nation’s most expensive market for retail gasoline and is followed by regional neighbors – Hawaii ($3.37), Washington ($3.19) and Nevada ($3.19) – as the five most expensive markets. A total of seven states are registering averages above $3 per gallon. Consumers in South Carolina ($2.45) are paying the lowest averages at the pump.

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State level gas prices have been relatively stable over the past week, moving by +/- 3 cents in 45 states and Washington, D.C. Drivers in 39 states are experiencing weekly savings in the price at the pump, led by Illinois (-7 cents), Delaware (-6 cents) and Minnesota (-6 cents). Pump prices are up in 11 states and Washington, D.C., with the largest increases in price seen in the Midwestern state of Ohio (+8 cents).

The majority of drivers (44 states and Washington, D.C.) are paying more at the pump than one month ago, primarily due to the lingering effects of localized refinery issues. Retail averages are up by double-digits in ten states, led by the Midwestern states of Michigan (+21 cents) and Ohio (+18). On the other end of the spectrum, monthly comparisons reflect discounts in the price of retail gasoline in six states. Prices on the West Coast are recovering from a string of refinery issues, and motorists in California (-26 cents) and Nevada (-11 cents) are finally experiencing some price relief as production returns to normal.

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Drivers nationwide are paying considerably less at the pump to refuel their vehicles compared to a year ago. Retail averages are discounted by more than $1 in three states: Kentucky (-$1.02), Connecticut (-$1.02) and Michigan (-$1.01), and motorists in 45 states and Washington D.C. are saving more than 75 cents per gallon year-over-year.

Concerns of oversupply continue to characterize the global oil market. The pending June 30 deadline for an Iranian nuclear deal could contribute further to the market’s oversupply if current sanctions are removed and Iranian oil returns to the global market. However, a string of attacks in France, Tunisia, and Kuwait have been closely watched for any impact on geopolitical instability in crude-producing regions in the Middle East and North Africa. Escalating tensions in these regions have the potential to cause supply disruptions, which could contribute to price volatility in the near term.

Market watchers are also paying close attention the European Union, where Greece may default on its debt obligations this week. This sets up a Greek referendum for this coming weekend on whether the country should accept a bailout deal offered by international creditors. This news sent global oil prices lower this morning on worries of reduced global demand and the potential for instability in global financial markets.

At the close of Friday’s formal trading on the NYMEX, WTI was down seven cents and settled at $59.63 per barrel.

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.

Average U.S. Gas Prices Holding Steady Near 2015 High

June 22nd, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, June 22, 2015) After reaching a new high for 2015 last week ($2.80), the national average price for regular unleaded gasoline has dropped slightly to $2.79 per gallon. Today’s price is five cents higher than one month ago and remains significantly discounted from this time last year with drivers saving an average of 89 cents per gallon year-over-year.

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Pump prices in recent days have stabilized or even dropped in many areas as refineries solve productions issues. For example, ExxonMobil’s refinery in Joliet, Ill. and PBF Energy’s refinery in Toledo, Ohio are reportedly operating at normal rates following recent malfunctions, which should further support the region’s gasoline supplies. Gasoline production typically increases this time of year in anticipation of summer demand, and high profit margins should incentivize refineries to produce more gasoline in the near future, which may help lower gas prices.

Drivers in California ($3.49) are paying the nation’s highest averages for retail gasoline, though prices have dropped significantly as refineries increase production and the supply situation in the region improves. The Golden State is joined by its regional neighbors: Alaska ($3.44), Hawaii ($3.36), Nevada ($3.21) and Washington ($3.18) as the nation’s top five most expensive markets for retail gasoline. A total of seven states are posting averages above $3 per gallon. Consumers in South Carolina ($2.48) are paying the lowest price at the pump, and are saving more than $1 per gallon compared to California.

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Retail averages were relatively stable week-over-week, moving by +/- 3 cents per gallon in 40 states and Washington, D.C. Motorists in 21 states are experiencing weekly savings at the pump, with the largest savings in the Midwest: Indiana (-15 cents), Ohio (-10 cents) and Michigan (-9 cents), largely due to refineries coming back online following production issues. On the other end of the spectrum, averages in 29 states and Washington D.C. climbed higher over this same period, although in a less dramatic fashion. The price is up by more than a nickel per gallon in four states: Washington (+8 cents), Oregon (+8 cents), Alaska (+6 cents) and Delaware (+6 cents).

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Motorists in the majority of states (45 and Washington, D.C.) are paying more than a month ago for gasoline. The average price per gallon is up by a nickel or more in 40 states and Washington, D.C. and by a dime more per gallon in 17 states and Washington, D.C. over this same period. Month-over-month, the largest increases in price have been in Montana (+19 cents), Alaska (+17 cents), North Dakota (+17 cents) and South Dakota (+13 cents). Outside of this trend, averages are down in five states versus one month ago. Consumers in California (-28 cents), Nevada (-10 cents) and Arizona (-6 cents) are saving the most per gallon.

Yearly price comparisons continue to reflect significant discounts for motorists nationwide. Four states are posting savings of $1 or more per gallon: Ohio (-$1.02), Kentucky (-$1.02), Connecticut (-$1.01) and Michigan (-$1.00). Drivers in a total of 45 states and Washington D.C. are saving more than 75 cents per gallon at the pumps.

Crude oil prices moved lower late last week due to a stronger U.S. dollar amid concerns about Greece’s financial instability. Eurozone leaders are continuing to negotiate in hopes of preventing a Greek default. A default or Greece’s exit from the Euro group would likely impact financial markets and could reduce global energy demand. The Organization of the Petroleum Exporting Countries (OPEC) reported its largest production levels since October 2012, and the U.S. also continues to produce at record levels. This means the global market is likely to remain oversupplied in the near term and any reductions in demand are expected to put downward pressure on price and exacerbate the current dynamic of oversupply.

At the close of Friday’s formal trading on the NYMEX, WTI was down 84 cents and settled at $59.61 per barrel.

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.

Gas Prices Make Unexpected Jump

June 15th, 2015 by Amanda Shapiro

Michael Green Contact Tile(WASHINGTON, June 15, 2015) Pump prices have climbed higher during the previous week, even though many market experts continue to believe that gas prices are nearing a seasonal high due to the completion of seasonal refinery maintenance and abundant crude oil supplies.  The national average price for regular unleaded gasoline moved higher each of the past six days reaching today’s average of $2.80 per gallon. Today’s average price represents a new 2015 high, and the national average is five cents more than one week ago and 10 cents more than one month ago. Gas prices unexpectedly have jumped in many areas over the previous week due to a decline in gasoline stocks caused by high fuel demand and persistent refinery problems, which has limited gasoline production. Despite the rise in pump prices, drivers continue to experience significant year-over-year savings with today’s average price about 86 cents per gallon less than the same date last year.

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California ($3.53) is one of four states where motorists are experiencing weekly savings at the pump, yet it remains the nation’s most expensive market for retail gasoline. The Golden State is followed by Alaska ($3.37), Hawaii ($3.34) and Nevada ($3.23). A total of eight states are posting averages above $3 per gallon. The West Coast continues be the nation’s most expensive region for gasoline, but is closely followed by the Midwest, where  a drawdown in gasoline stocks and issues at regional refineries have combined to push prices dramatically higher.  Drivers in South Carolina ($2.49) and Mississippi ($2.52) are paying the lowest averages at the pump.

On the whole, pump prices are trending higher week-over-week. Averages have moved higher in 46 states and Washington, D.C. over this same period, and drivers in 19 states and Washington, D.C. are paying a nickel or more per gallon to refuel their vehicles. The largest jumps in price were in the Midwestern states of Indiana (+28 cents), Michigan (+25 cents) and Ohio (+13 cents). The only states with weekly declines include California (-8 cents), Nevada (-3 cents) and Arizona (-2 cents) and New Mexico (fractions of a penny).

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Monthly price comparisons also reflect higher averages for American drivers. Consumers in 47 states and Washington, D.C., are paying more at the pump, and the price is up by a nickel or more in 45 states and Washington, D.C. The states posting the most dramatic month-over-month increases in price include: Michigan (+33 cents), Illinois (+25 cents), Montana (+24 cents), Indiana (+21 cents) and Ohio (+21 cents). Drivers in a total of 34 states and Washington, D.C. are paying monthly premiums of a dime or more per gallon. The only three states where the price has moved lower over this same period are the Western states of California (-28 cents), Nevada (-6 cents) and Arizona (-4 cents).

Retail averages remain significantly discounted year-over-year, with the majority of drivers (45 states and Washington, D.C.) saving more than 75 cents per gallon. The largest discounts in the price at the pump are in Ohio (-$1.04), Hawaii (-$1.02) and Kentucky (-$1.01).

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Even though regional refinery issues have driven the recent increase in the national average for retail gasoline, the cost of crude oil remains the underlying factor in the price motorists pay at the pump. Market analysts continue to suggest that ample crude oil supply will outpace global demand and characterize oil markets in the near term. Saudi Arabia, the world’s leading crude exporter, is reportedly prepared to increase its production to meet strong demand, which likely would keep a ceiling on the price of crude. Domestic production also remains elevated and is expected to remain at or near current levels, despite the reduction in U.S. oil rig counts.

At the close of Friday’s formal trading on the NYMEX, WTI was down 81 cents and settled at $59.96 per barrel.

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.

Michael Green Contact Tile(WASHINGTON, June 8, 2015) The national average price for regular unleaded gasoline has remained steady over the past week and continues to hover near at what many expect to be the highest average of the year. Today’s price of $2.75 per gallon is fractions of a penny higher than a week ago and is nine cents per gallon higher than one month ago. While pump prices across the country have increased since April, consumers are saving 90 cents per gallon compared to this same date last year.

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Gas prices likely are poised for a seasonal decline given that refineries generally complete maintenance by this time of year and gear up production for the busy summer driving season. In addition, the cost of crude oil is unlikely to rise significantly in the near term given that OPEC decided not to cut production at its most recent meeting. Nevertheless, a number of factors could cause prices to inch higher during the summer driving season, such as geopolitical issues in the Middle East, unexpected problems at major refineries or a major hurricane that disrupts production, refining and distribution.

Pump prices in the Midwest recently surged due to a series of a refinery issues in the region that have limited production. According to the U.S. Energy Information Administration, gasoline production in the Midwest during the most recent week fell to its lowest levels since late March. Meanwhile, prices on the West Coast are stabilizing due to a surge in imports that have helped to offset supply issues stemming from refinery problems.

California ($3.61) remains the nation’s most expensive market for retail gasoline. A total of seven states, all located in the Western United States, have averages above $3 per gallon, including Alaska ($3.37), Hawaii ($3.31), Nevada ($3.26), Washington ($3.06), Utah ($3.02) and Oregon ($3.02). The nation’s least expensive markets for retail gasoline are South Carolina ($2.45), Mississippi ($2.47) and Arkansas ($2.50).

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Week-over-week prices have been relatively stable, moving just +/- 3 cents in more than half of the states (31). Consumers in 37 states and Washington, D.C. are paying more at the pump versus one week ago, with averages in eight states reflecting increases of a nickel or more per gallon. The largest increases in price over this period were in Minnesota (+8 cents), Alaska (+7 cents) and Montana (+7 cents). Prices moved lower in 13 states versus one week ago, and the largest savings in the price at the pump were in Indiana (-10 cents), Ohio (-9 cents) and California (-9 cents).

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The majority of drivers nationwide (49 states and Washington, D.C.) are paying more per gallon than one month ago. Averages moved higher by a nickel or more per gallon in 43 states and Washington, D.C., and drivers in 19 states and Washington D.C. are paying a dime or more per gallon month-over-month. Drivers in Montana (+27 cents), Alaska (+21 cents), Wyoming (+21 cents) and Illinois (+20 cents) have seen prices move dramatically higher over this same period, largely due to regional refinery issues. California is the only state outside of this trend, and motorists in the state are seeing monthly savings of 11 cents per gallon as prices have retreated following a substantial run-up.

Pump prices continue to be significantly discounted versus one year ago and motorists are poised to pay the lowest prices during the summer driving season since 2009. Retail averages are down in every state and Washington, D.C., with consumers 45 states and Washington, D.C. saving at least 75 cents per gallon year-over-year. The Midwestern states of Indiana (-$1.25) and Michigan (-$1.24) are posting the largest savings over this same period, and the price at the pump is down by $1 or more in a total of nine states.

As expected, OPEC opted to maintain its current production levels during its June 5 meeting in Vienna, and the global oil market is likely to remain oversupplied in the near term. The oil cartel explained its decision by citing expectations of increased demand from emerging economies and the fact that recent increases in the global price have made the market favorable for both producers and consumers. OPEC plans to continue to monitor developments in the coming months and could reassess their decision at their next meeting scheduled for December 4.

At the close of formal trading on the NYMEX on Friday, West Texas Intermediate crude oil increased $1.13, settling at $59.13 per barrel.

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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