July 22nd, 2014 by admin
(WASHINGTON, July 22, 2014) The national average price of gas has fallen for 24 consecutive days due to abundant refinery production, even as geopolitical tensions gain global attention. Russia and Ukraine returned to the forefront this past week when Malaysian Airlines Flight 17 crashed in eastern Ukraine in an area controlled by pro-Russian separatists. Additionally, intensifying violence between Israeli and Hamas forces in Gaza has drawn headlines and concerns that the conflict could have a broader regional impact. Despite these issues, oil markets remain relatively unaffected because there has not been an impact to supply or distribution. Meanwhile, domestic refinery utilization reached its highest level of the year last week, which has helped to push gas prices lower.
Today’s national average price for regular unleaded gasoline is $3.57 per gallon, which is the lowest price since April 4. Today’s price is four cents less than one week ago, 11 cents less than one month ago, and the national average has now declined for 24 straight days. In comparison to this same date last year, drivers are saving nearly a dime per gallon at the pump. Today marks the seventh consecutive day with gas prices cheaper than a year ago. This streak comes after prices remained higher than last year for 52 straight days.
Pacific states continue to lead the market with the highest prices per gallon, led by Hawaii ($4.34), Alaska ($4.14) and California ($4.04). Despite the high cost in many states, drivers across the country have seen gas prices finally move lower over the past several weeks. Prices have fallen over the past fourteen days in 47 states and Washington D.C., led by ten states – mainly in the Midwest – where prices are at least ten cents lower. None of the states where motorists are paying a two-week premium have seen an increase of more than two cents: Wyoming and Hawaii (up fractions of a cent) and Idaho (+2 cents).
Year-over-year and month-over-month comparisons also show overall savings in the retail prices paid by many motorists. Compared to the same date last year, consumers in 40 states and Washington D.C. are paying less at the pump. In 25 states, drivers are saving a dime or more per gallon, with the biggest savings once again occurring in Midwestern states, led by six states where prices have tumbled 20 cents or more: Illinois (-32 cents), Kansas (-24 cents), Minnesota (-24 cents), Indiana (-23 cents), Missouri (-21 cents) and Michigan (-21 cents). Month-over-month comparisons show that drivers in 42 states and Washington D.C. are experiencing some relief at the pump. Prices in eight states have increased during this span, led by Idaho (+8 cents), Utah (+6 cents) and Wyoming (+5 cents).
Prior to the crash of flight MH17, the Obama Administration announced a new round of sanctions against Russia’s energy and financial sectors. Members of NATO and the European Union are also debating stronger sanctions against Russia, which could potentially impact global markets. West Texas Intermediate (WTI) crude oil prices have increased over the last several trading sessions after falling to a multi-month low below $100 last Tuesday. At the close of formal trading on the NYMEX, WTI settled $1.46 higher at $104.59 per barrel.
July 16th, 2014 by admin
ORLANDO, Fla., (July 16, 2014) – “AAA is encouraged by the recent Wall Street Journal report that the Environmental Protection Agency is considering a requirement that carmakers use on-the-road data to support their advertised mileage claims. While some automakers already do this, AAA believes all companies should use this sort of real-world test to validate the mileage numbers they calculate from laboratory tests and computer simulated estimates. For most Americans, a new vehicle is the second largest investment they will make and it’s imperative they have accurate information to inform their purchase. While reports show that many consumers actually experience better fuel economy than promised, it is important for the ratings to be as accurate as possible and not overstate real-world performance. The EPA testing process was significantly improved in 2008 to better reflect real-world conditions, and AAA looks forward to again working with the Agency to identify opportunities and provide data to further improve the information for consumers.”
As North America’s largest motoring and leisure travel organization, AAA provides more than 54 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.
July 14th, 2014 by admin
(WASHINGTON, July 14, 2014) Today’s national average price for regular unleaded gasoline is $3.61 per gallon. This price is four cents less than one week ago and five cents less than one month ago. Drivers continue to pay higher prices in comparison to a year ago ($3.60), but the difference has narrowed to just a penny compared to 19 cents to begin July. Today is the 17th consecutive day the national average has decreased.
As predicted by AAA, the retail price at the pump continued to tick lower following the Independence Day holiday due primarily to lower crude oil costs as the situation stabilizes in Iraq, The national average may continue to slide or remain flat, barring any geopolitical concerns, major hurricane or refinery disruptions.
Hawaii leads the market with the most expensive price per gallon at $4.34, followed by Alaska ($4.19) and California ($4.10). While prices in many states remain elevated, the price at the pump in 45 states and Washington D.C. has fallen over the past week with the biggest savings occurring in the Midwest: Indiana (-13 cents), Michigan (-12 cents), Kentucky (-10 cents), Ohio (-9 cents) and Illinois (-8 cents). This downward trend is also reflected over the past two weeks with drivers in 42 states and Washington D.C. experiencing savings at the pump, including six states where consumers are saving a dime or more per gallon: Michigan (-22 cents), Ohio (-16 cents), Kentucky (-16 cents), Indiana (-14 cents), Illinois (-13 cents) and Missouri (-10 cents).
The month-over-month comparison is more evenly split – the price per gallon has decreased in 27 states and increased in 23 states and Washington DC. The largest price drops have been in the Midwestern states of Ohio (-41 cents), Indiana (-36) and Michigan (-28 cents) and Illinois (-23 cents), while drivers in four states are paying a dime or more per gallon: Idaho (+14 cents), Utah (+13 cents), Alaska (+12 cents) and Colorado (+12 cents). Year-over-year averages have increased in 36 states and Washington D.C. led by: Nevada (+18 cents), Pennsylvania (+18 cents) and Alaska (+15 cents).
Although the situation in Iraq remains unresolved, the possibility of disruptions to supply is increasingly viewed as unlikely. Oil production has returned in Libya, following the labor disputes and violence that resulted in the closing of national oil fields and ports. Market watchers will continue to monitor the instability in Iraq and Libya, with a watchful eye to Ukraine, Venezuela and Nigeria, but after rising to a multi-month high ($107.26 per barrel on June 20), the price of West Texas Intermediate (WTI) crude oil has now fallen over three straight weeks.
At the close of formal trading on the NYMEX, WTI settled eight cents higher at $100.91. Should WTI prices fall below $100 in the coming days it would be the first time since May 9 that prices have dipped below this threshold.
July 7th, 2014 by admin
(WASHINGTON, July 7, 2014) The national average price of gas has fallen for ten straight days, but remains the highest price for this calendar date since 2008. Yesterday, for the first time since June 11, the national average price for regular unleaded gasoline reflected a month-over-month discount. Today’s average is $3.65 per gallon. This price is two cents less than one week ago and fractions of a penny less than one month ago, but it remains 18 cents more than this date in 2013.
With Independence Day in the books, this year’s holiday registered the highest price since 2008 at $3.66. This surpassed the price per gallon for the holiday from each of the previous five years: 2013 ($3.48); 2012 ($3.34); 2011 ($3.57); 2010 ($2.74); and 2009 ($2.62), but was still well below the all-time-high for the date of $4.10 in 2008.
The pump price in four states continues register above $4.00 per gallon: Hawaii ($4.33), Alaska ($4.22), California ($4.14) and Washington State ($4.01). While prices in all but three states (Idaho, Wyoming and Utah) are higher than the same date last year, prices in 38 states have dropped over the past week, led by a handful of Midwestern states: Michigan (-10 cents), Ohio (-7 cents), Missouri (-6 cents), Kentucky (-6 cents), Illinois (-5 cents) and Minnesota (-4 cents). Prices over the past two weeks have been more evenly split. Prices in 23 states and Washington, DC have increased – led by Alaska (+7 cents), Utah (+6 cents) and Idaho (+5 cents) – while prices in 27 states have fallen – led by Ohio (-17 cents), Indiana (-12 cents) and Illinois (-12 cents). With high wholesale gasoline prices beginning to subside in many parts of the country, AAA expects pump prices for many US motorists to continue to tick lower over the coming week.
Violence in Iraq continues to impact global oil prices, but as production in the south of the country remains unaffected, the fear of a disruption to supply has abated. Market watchers are keeping a close eye on the situation, but the risk premium that had pushed oil prices to 2014 highs has subsided in recent trading sessions. These elevated oil prices have meant stubbornly high pump prices for motorists, but as oil prices have eased retail gas prices have finally started to follow suit.
At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 53 cents lower at $103.53.
June 30th, 2014 by admin
AAA Monthly Gas Price Report
(WASHINGTON, June 30, 2014)
Drivers Stuck Paying Highest Gas Prices in Six Years for Independence Day
- U.S. drivers will pay the most expensive Independence Day gas prices since 2008, primarily because Iraqi violence has increased global petroleum costs. AAA predicts that 34.8 million Americans will travel 50 miles or more by car during the holiday weekend despite high gas prices.
- “Most drivers are paying about 15-20 cents more per gallon than expected heading into the busy Independence Day weekend due to market fear about Iraq,” said Avery Ash, AAA spokesman. “It is frustrating that events overseas will make it more expensive to celebrate Fourth of July here at home.”
- With Independence Day only a few days away, today’s national average price of gas is $3.68 per gallon. This average is considerably more expensive than recent years for the holiday. The national average on July 4 in previous years was: $3.48 (2013); $3.34 (2012); $3.57 (2011); $2.74 (2010); $2.62 (2009); and $4.10 (2008).
- AAA does not believe that high gas prices will have a significant impact on the number of people traveling, but it could result in some consumers cutting back on dining, shopping or other trip activities. AAA’s full Independence Day forecast can be found here.
- The monthly average price of gas in June was $3.67 per gallon, which was the most expensive for June since 2011, and it was the highest average for any month since March 2013. Last year gas prices averaged $3.60 per gallon in June.
- Gas prices often decline in June as refineries complete maintenance and increase gasoline production in anticipation of the summer driving season. During the previous three years, the national average price of gas declined in June by an average of 21 cents per gallon. A month ago, AAA predicted the national average could decline 10-15 cents per gallon in June, but this did not happen due to the unexpected events in Iraq.
- On June 10, insurgents known as the Islamic State of Iraq and the Levant (ISIL), captured Mosul, which is Iraq’s second largest city. Following this attack, there were concerns in the market that the rebels would take Baghdad or disrupt the southern oil producing regions of the country. These concerns helped drive up global oil prices, which made it more expensive to produce gasoline. Iraq is the second largest oil producer in OPEC, and any decline in exports could impact global oil supplies.
Gas Prices to Remain Expensive During Summer Driving Season
- Gas prices this July likely will remain expensive due to high crude oil costs and rising summertime demand. AAA expects the national average price of gas in July will range from $3.60-$3.70 per gallon, though prices could climb higher if there are new developments in Iraq or a major hurricane. Last year gas prices averaged $3.58 per gallon nationally in July.
- “It is shaping up to be a hot and expensive summer for gas prices, and we have not even hit the busiest time of the year yet,” continued Ash. “It is clear that most drivers will pay high prices as they fill up for their summer road trips.”
- AAA expects the national average price of gas likely will remain relatively flat in the near future and could even decline a few cents as the situation stabilizes in Iraq. Price increases from recent ISIL attacks in Iraq already are reflected in current prices, and it would take major new developments, such as ISIL moving into southern oil producing regions, for prices to rise significantly higher in the days ahead.
- Gas prices have increased by an average of 16 cents per gallon in July during the previous three years as strong summer demand pushed up prices. July is typically the second busiest month of the year on the roads behind August. Last year Americans drove a total of 263.2 billion miles in July.
- From Memorial Day through Labor Day in 2013, gas prices nationally averaged $3.58 per gallon. The most expensive summer driving period was in 2008 when prices averaged $3.95 per gallon. Gas prices have averaged $3.67 per gallon so far this summer.
National Average Price of Gas Has Remained Flat This Week
- Today’s national average price of gas is $3.68 per gallon, which is the same as a week ago. Gas prices nationally have stopped increasing and have remained relatively flat in recent days as the situation stabilizes in Iraq. The conflict in Iraq is unlikely to send gas prices significantly higher unless there are major developments in Baghdad or in the southern oil producing regions.
- The five states with the highest average prices today include: Hawaii ($4.34), Alaska ($4.22), California ($4.13), Washington ($4.00) and Oregon ($3.98). The five states with the lowest average prices include: South Carolina ($3.39), Alabama ($3.42), Mississippi ($3.45), Tennessee ($3.46) and Arkansas ($3.48).
- Despite high gas prices in most parts of the country, drivers in four states are paying less than a year ago. These four states include Utah (-8 cents), Idaho (-6 cents), Montana (-1 cent) and Colorado (-0.1 cents). The states with the largest price increases compared to a year ago include Michigan (42 cents), Kentucky (37 cents) and Ohio (32 cents).
- The most expensive metro area in the continental United States is San Luis Obispo-Atascadero-Paso Robles, Calif. at $4.24 per gallon. The least expensive metro area in the United States is Greenville-Spartanburg-Anderson, S.C. at $3.33 per gallon.
June 30th, 2014 by admin
( WASHINGTON, June 30, 2014) The national average price of gas has stopped increasing as we approach the Independence Day holiday, though prices remains at a six-year high for this time of year. Today’s national average for regular unleaded gasoline is $3.68 per gallon. The price has remained relatively stable over the past seven days, and the current price is just a penny more than one month ago.
Consumers have seen little fluctuation in the national average for the month of June; however the current price at the pump is 19 cents more than at this time last year ($3.49). In comparison to previous Independence Day holidays, motorists will face prices that are the highest since 2008, with today’s average ($3.68) surpassing the holiday’s price per gallon from: 2013 ($3.48); 2012 ($3.34); 2011 ($3.57); 2010 ($2.74); and 2009 ($2.62).
The situation in Iraq continues to put pressure on global oil prices, as markets weigh the potential for supply disruptions from OPEC’s second largest producer. These elevated oil prices have ultimately meant stubbornly high retail gasoline prices for motorists.
This past Friday (June 27), the price at the pump reached the $4.00 mark in the state of Washington ($4.00 today) for the first time since 2013 (May 24). The Evergreen State joins Hawaii ($4.34), Alaska ($4.21) and California ($4.13) with prices at or above $4.00 per gallon. Prices have remained relatively stable (+/- 2 cents) over the last week in 43 states and Washington, D.C., and consumers in just four states have seen prices either rise or fall more than a nickel over this same period: Alaska (+7 cents), Illinois (- 6 cents), Ohio (-10 cents) and Indiana (-11 cents). Prices over the last 30 days have been more universally volatile with consumers in 31 states and Washington, D.C. posting averages that have moved either up or down over a nickel, led by Alaska (+21 cents), Ohio (-23 cents) and Indiana (-25 cents).
Regardless of geographic location, motorists in nearly every state are paying more at the pump than one year ago. Motorists in 40 states and Washington, D.C., are experiencing a bit of sticker shock, with prices up a dime or more compared to this time last year. This largest increases are in Michigan (+42 cents), Kentucky (+37 cents) and Ohio (+30 cents). However, four states are outside of this trend and have posted year-over-year declines: Colorado (-0.1 cent), Montana (-1 cent), Idaho (-6 cents) and Utah (-8 cents).
Energy market analysts continue to monitor the situation in Iraq and the movements of the group ISIL (Islamic State of Iraq and the Levant). After capturing Mosul, Iraq’s second largest city, it was rumored that ISIL would enter Baghdad or the country’s southern oil producing. These concerns caused global prices to rise, but, many analysts now see this action as unlikely in the near term barring a major offensive move by ISIL.
The conversation regarding domestic production was revived this week when two Texas energy companies received permission to export ultra-light oil to foreign buyers. The decision relates to a decades long ban on crude exports, enacted in response to the 1973 OPEC oil embargo and the historic gasoline shortages of the 1970s. The move falls short of relaxing the ban on oil exports, which oil producers have called for, and will remain a topic of discussion in the coming months.
At the close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 37 cents lower at $105.37.
January 8th, 2013 by admin
National Average Expected to Peak at $3.60-$3.80 Per Gallon This Year
WASHINGTON, D.C., (January 8, 2013) – Gasoline prices this year will be less expensive than in 2012 as a result of increased domestic oil production and lower demand, according to AAA. The national average price of gasoline should peak at $3.60-$3.80 per gallon barring any significant unanticipated events, which compares to a peak of $3.94 a gallon in 2012.
“Cheaper gas prices are good news for the millions of Americans that depend on their car to travel where they need to go,” said AAA President and CEO Robert Darbelnet. “Lower gasoline prices should translate into billions of dollars in tangible household savings given that the vast majority of Americans rely on automobiles to live their lives.”
Gasoline prices should rise steadily through April or early May, but at a slower pace than last year. As is typical for this time of year, prices will rise as a result of seasonal demand increases and in anticipation of the switchover to more expensive summer-blend gasoline. Following a late-spring peak, prices should drop during the first half of the summer to as low as $3.20-$3.40 per gallon before rising again in advance of the Gulf Coast hurricane season and the switchover to winter-blend gasoline. Prices should end the year by falling to low or near-low averages for 2013.
“Absent significant storms, majors wars or production and distribution outages, the single largest factor that will influence gasoline prices in 2013 will be the strength of the U.S. economy,” continued Darbelnet. “Stronger than expected growth in the economy would result in higher oil and gasoline prices in anticipation of higher consumption, while a weaker than expected economy would drive prices downwards. Inaction by Congress to reach a debt deal in two months also would result in increased concern about the U.S. economy and could lead to lower gasoline prices.”
Today’s national average price of gasoline is $3.30 per gallon, which is seven cents less than last year and five cents less than a month ago. Motorists in 39 states today are paying lower average gasoline prices than a year ago. States paying more than last year are located primarily in the Northeast, which is still dealing with the supply aftereffects of Hurricane Sandy. The average price of gasoline today is below $3.00 per gallon in six states including Colo., Idaho, Minn., Okla., Utah and Wyo.. The only state paying more than $4.00 per gallon is Hawaii.
The annual average price of gasoline in 2012 was the most expensive on record at $3.60 per gallon, but the situation for motorists is already improving. On Jan. 5, the national daily average dropped below the year-ago price for the first time since August 20, which means motorists are now paying less for gasoline than last year – a trend that AAA believes is likely to continue.
Gasoline prices in 2012 reached record highs partly as a result of unanticipated production disruptions from refinery fires, pipeline closures and major hurricanes. Oil prices also were higher as a result of tensions in the Middle East including new sanctions on Iran. These types of market-moving events are impossible to predict and any forecast on gasoline prices can change as a result of similar factors.
As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at AAA.com.