Drivers should keep resale value top of mind when buying a new vehicle

ORLANDO, Fla. (Sep. 13, 2018) – AAA’s 2018 Your Driving Costs study reveals the largest expense associated with purchasing a new car is something many drivers fail to consider – depreciation. In fact, it accounts for almost 40 percent of the cost of owning a new vehicle – more than $3,000 per year – and is influenced by a number of factors, including shifting consumer preferences. AAA urges car buyers to think about both market trends and length of ownership when shopping for their next vehicle purchase. 

“New vehicles offer the latest designs, cutting-edge technologies and warranties that offer peace of mind,” said John Nielsen, AAA’s managing director of Automotive Engineering and Repair. “But, car owners that like to change vehicles frequently should be thinking about the resale value – not just the purchase price – when choosing their next ride.”

Additional Resources

• Brochure

AAA’s annual analysis found demand for sedans has slipped as American appetite shifts to SUVs and pickup trucks. As a result, depreciation costs of these once-popular vehicles increased up to 13 percent as compared to last year. Electric and hybrid vehicles, however, have seen a gain in popularity with 20 percent of Americans saying they will likely go electric for their next vehicle purchase, up from 15 percent the previous year. This year, these vehicles also saw a dip in depreciation and offer many cost benefits such as lower repair and maintenance bills, making going green a more affordable choice than in years past.

Buyers often only give priority to purchase price and monthly payment when choosing a new car, sometimes selecting a vehicle based on the best deal available. The length of car ownership, however, is of equal importance. Consumers who plan to keep a vehicle for only a few years should be cautious of deep discounts and incentives offered by automakers and dealers. These are often designed to sell less popular models and directly influence depreciation. Low down payments and extended finance terms can also have a similar effect. Stretching a car loan over five, six or even seven years may be an effective way to lower payments, but owners may quickly find themselves owing more than the vehicle is worth.

Leasing is similarly affected since payments are based in part on the projected residual value of the car at the end of the lease, serving as a good indicator of which models experience higher or lower depreciation. Since resale value is not a factor at the end of the lease period, buyers who prefer less popular models or only want a vehicle for a short time, may consider leasing a more viable option.

“The secret to minimizing depreciation costs?” continued Nielsen. “Keep your car for a long time and keep it well-maintained or even consider buying a quality, pre-owned vehicle.”

AAA’s Your Driving Costs found the average cost to own and operate a new vehicle in 2018 is $8,849 per year. The figure is calculated based on the cost of fuel, maintenance, repairs, insurance, license/registration/taxes, depreciation and loan interest. The study examined 45 top-selling 2018 model-year vehicles across the following nine categories.

*Based on 15,000 miles driven annually

While the latest technology, style and options make them attractive to car buyers, a new car may not be the most economical choice for some buyers. Vehicle owners looking for alternatives to new car ownership or ways to minimize their operating costs should consider the following:

• Buy (gently) used – By driving a pre-owned vehicle in good condition, ownership costs are significantly lower. A safe, reliable vehicle can be found at an attractive price point.
• Fuel responsibly – Avoid wasting money on premium grade gasoline unless your vehicle specifically requires it and, if you’re one of the 20 percent of Americans considering an electric car, these vehicles offer lower fuel and maintenance costs.
• Show your car some love – It sounds counterintuitive, but spending money on routine maintenance can actually save you money in the end. To keep engines running cleaner and longer, consider switching to synthetic oil and upgrading to a higher quality fuel TOP TIER™ gasoline.
• Slow down – When gas prices are high, small changes in the way you drive can make a big difference.

AAA’s Your Driving Costs study employs a proprietary methodology to analyze the costs of owning and operating a new vehicle in the United States, using data from a variety of sources, including Vincentric LLC. Additional information and detailed driving costs, including those for fuel, maintenance, repairs, insurance, license/registration/taxes, depreciation and finance charges can be found at NewsRoom.AAA.com or AAA.com/YourDrivingCosts.

As North America’s largest motoring and leisure travel organization, AAA provides more than 59 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. Motorists can map a route, identify gas prices, find discounts, book a hotel and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. AAA clubs can be visited on the Internet at AAA.com.

On the week, the national gas price average jumped a penny to land at $2.85. Prices remain relatively stable across the country as gasoline demand dipped slightly and gasoline inventories incrementally built according to the latest Energy Information Administration (EIA) reports.

With the switchover to winter-blend gasoline fast approaching (September 15), gas prices are expected to decline this month. The threat of Hurricane Florence —  which is now a Category 2 storm and projected to hit between South Carolina and Virginia by end of this week —will likely have an impact on East Coast gas prices this week should the storm follow its projected path.

“A storm like this typically causes an increase in fuel purchases in the market and a slowdown in retail demand. Motorists can expect spikes in pump prices to be brief, but possibly dramatic,” said Jeanette Casselano, AAA spokesperson. “AAA will continue to monitor the storm and will provide updates. Motorists can find the latest gas prices at GasPrices.AAA.com.”

Quick Stats

• The nation’s top 10 least expensive markets are: Alabama ($2.52), Mississippi ($2.54), Arkansas ($2.57), Louisiana ($2.58), South Carolina ($2.59), Tennessee ($2.59), Virginia ($2.61), Missouri ($2.61), Texas ($2.62) and Oklahoma ($2.63).

• The nation’s top 10 largest monthly changes are: Michigan (-12 cents), South Dakota (-10 cents), Illinois (-10 cents), Colorado (+7 cents), North Dakota (-7 cents), Alaska (-7 cents), Nebraska (-6 cents), Florida (-6 cents), District of Colombia (-5 cents) and Tennessee (-5 cents).

West Coast

The West Coast remains the nation’s most expensive region for retail gasoline, with six of the region’s states represented in the nation’s top 10 most expensive list. Hawaii ($3.77) is the nation’s most expensive market, followed by California ($3.63), Washington ($3.39), Alaska ($3.31), Oregon ($3.26), Nevada ($3.20) and Arizona ($2.86). Prices in the region remain relatively flat compared to last week, except for a one-cent jump in California, Washington and Nevada.

According to OPIS, a handful of West Coast refineries including Andeavor’s Martinez refinery, Chevron’s Richmond refinery and two Phillip’s 66 refineries near San Francisco and Puget Sound may begin refinery maintenance in the coming weeks. The EIA’s weekly petroleum status report showed West Coast motor gasoline stocks totaled 28.3 million bbl, which is 2 million more than the 26.3 million bbl seen at the same time last year. This 2 million bbl cushion in gasoline stocks may prevent increases at the pump during refinery turnaround season, barring any unforeseen unplanned outages or prolonged maintenance.

Great Lakes and Central

Motorists in the Great Lakes and Central states are seeing pump prices mostly remaining steady on the week. Only three states saw any ‘significant’ spikes in gas prices: Michigan (+6 cents), Indiana (+4 cents) and Kentucky (+4 cents). South Dakota and Missouri both have the largest pump price drop – three cents – of all states in the region.

Compared to one month ago, motorists in every state in the region – except Ohio (+1 cent) – are paying less to fill up. Five Great Lakes and Central states land on the top 10 largest monthly changes list: Michigan (-12 cents), South Dakota (-10 cents), Illinois (-10 cents), North Dakota (-7 cents) and Nebraska (-6 cents).

Gasoline inventories built slightly on the week to register at 53.1 million bbl, which is the largest inventory level recorded for this time of year since 2008. With demand expected to continue declining, and taking into account high inventory levels, motorists in the region can expect prices to steadily decline this fall.

South and Southeast

Pump prices have jumped as much as a nickel in the South and Southeast on the week, but only for a few states: South Carolina (+5 cents), Georgia (+3 cents) and Texas (+3 cents). These three states land on the Top 10 with the largest jumps in pump prices on the week. Florida saw prices drop by four cents, the largest of any state in the region, while most states are seeing pump prices a penny cheaper or stable since last Monday.

As Hurricane Florence approaches, South Carolina and surrounding states could see brief spikes in pump prices this week.

Gasoline inventories continue to register slightly above 80.6 million bbl, according to the EIA’s latest data report. Total inventories are slightly higher compared to most of July and early August, which saw levels below 80 million, indicating that demand may be strong through the region through early fall. This could mean gas prices may not drop as quickly as expected post Labor Day.

Mid-Atlantic and Northeast

Delaware saw gas prices make a late-in-the-season 12-cents spike on the week, which was the largest jump in the country and in the region. Part of this increase could be connected to a recent drop in regional refinery utilization that is linked to the unplanned shutdown at Phillip’s Bayway refinery last month. Also seeing increases of more than a penny on the week: Maryland (+4 cents), New Jersey (+3 cents), Pennsylvania (+2 cents) and Maine (+2 cents).

As most states see prices decline, four Mid-Atlantic and Northeast state averages still remain at $3/gal or more heading into fall: Pennsylvania ($3.07), Connecticut ($3.04), New York ($3.00) and Washington, D.C. ($3.00).

Last week, all eyes were on tropical storm Gordon. This week it is Hurricane Florence, which will most likely impact North Carolina and Virginia pump prices and surrounding states if the storm stays on its projected path.

For a second week, gasoline inventories added a surprise build of nearly 2 million bbl, which is helping to keep most state gas price averages steady. Sources say a good bit of the inventory uptick can be attributed to strong imports. Total inventory for the Mid-Atlantic and Northeast sits at 66 million bbl.

Rockies

Motorists in Utah (-3 cents), Idaho (-2 cents) and Wyoming (-1 cent) continue to welcome steady pump price declines after a very expensive summer. Despite the cheaper averages, Idaho ($3.23) and Utah ($3.16) still carry two of the ten most expensive gas price averages in the country.

Gasoline inventories had a small, but unexpected small 561,000 bbl build on the week, according to EIA data. At 6.5 million bbl, it is one of the lower readings for the region this year. Gas prices could see larger declines if inventories increase and demand drops in the coming weeks.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI dropped two cents to settle at $67.75. The drop in the price of crude oil can be attributed to several factors including increasing U.S. gasoline inventories, wariness regarding U.S. sanctions against Iran, and instability in production in Libya and Venezuela. According to EIA’s report, total motor gasoline inventories increased by 1.8 million bbl last week and are about 7 percent above the five-year average for this time of year. At the same time crude oil stocks dropped 4.3 million barrels from the previous week as refinery utilization rates reached 96.6 percent. These market dynamics are mostly keeping gas prices flat, but a factor that may negatively impact prices is the threat of Hurricane Florence in the Atlantic. While it is still too early to pinpoint exactly where it will make landfall, the National Hurricane Center reports landfall could occur somewhere between South Carolina and Virginia late this week.

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.

At $2.83, the national gas price average is trending toward lower gas prices that motorists haven’t seen since early May. Today’s national gas price average is one-cent less on the week, four-cents cheaper than last month, but 19-cents more than a year ago.

Motorists took advantage of these stable and lower prices by driving gasoline demand to its highest level ever on record at 9.899 bbl for the week ending August 24, according to the Energy Information Administration. But that spike is not expected to continue.

“With summer in the rearview mirror, demand is expected to significantly drop off in the coming weeks which means motorists can expect to see gas prices steadily decline,” said Jeanette Casselano, AAA spokesperson. “AAA expects the national average to hit $2.70 or less this fall.”

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii($3.78), California ($3.62), Washington ($3.38), Alaska ($3.31), Oregon ($3.26), Idaho ($3.25), Nevada ($3.19), Utah ($3.18), Pennsylvania ($3.05), and Connecticut ($3.04).
• The nation’s top 10 largest monthly changes are: Indiana (-16 cents), Kentucky (-12 cents), Illinois (-11 cents), Delaware (-10 cents), Ohio (-10 cents), Idaho (+10 cents), Utah (+10 cents), Alaska (-9 cents), South Dakota (-8 cents) and Michigan (-8 cents).

West Coast

The West Coast remains the nation’s most expensive region for retail gasoline, and most of the states represented in the nation’s top ten most expensive are located west of the Rockies. Hawaii ($3.78) is the nation’s most expensive market, followed by California ($3.62), Washington ($3.38), Alaska ($3.31), Oregon ($3.26), Nevada ($3.19) and Arizona ($2.86). Prices in the region are mostly flat compared to last week, except for a two-cent jump in both California and Oregon.

Last week’s, Energy Information Administration report showed West Coast gasoline supplies dropped by 1.2million bbl, their largest one-week draw in five months. The region’s supplies now sit at 28.9 million bbl, which is still 2.7 million bbl higher than the same week last year.

Great Lakes and Central

Gas prices continue to be volatile in the Great Lakes and Central states with gas price averages as much as seven-cents cheaper in Michigan to six-cents more expensive in Missouri on the week. While some states in the region saw slight increases at the pump due to the holiday weekend, most states are seeing cheaper pump prices, which will likely be the trend for the region in coming weeks as gasoline demand is expected to level off.

Despite a draw in inventory, regional levels remain at a healthy nearly 53 million bbl – which is helping to keep most gas prices down. The EIA reports that total levels are on par with this time last year.

South and Southeast

Gas price averages are on a roller coaster ride in the South and Southeast. On the week, gas prices are up, down and stable throughout the region: Florida (+6 cents), Texas (-2 cent), Louisiana (-1 cent). Pump prices held fairly steady in Georgia ($2.70), Alabama ($2.53), South Carolina ($2.53), Arkansas ($2.57) and Mississippi ($2.55).

Some of the volatility is likely due the region’s drop in demand as seen in the year-over-year 1.5 million bbl deficit in gasoline inventories. Despite the deficit, the EIA reports total inventory for the South and Southeast at 80.9 million bbl, which is one of the largest readings in the region for July and August 2018 data.

Residents and businesses are bracing for tropical storm Gordon, which is forecast to make landfall late Tuesday as a Category 1 hurricane along the coast of Louisiana and Mississippi. The National Hurricane Center warned of storm surges and possible tornadoes in Louisiana, Mississippi, Alabama and the Florida Panhandle. AAA will continue to monitor the storm and will provide updates and information that may impact gas prices.

Mid-Atlantic and Northeast

Gas prices continue to trend flat across the Mid-Atlantic and Northeast states.

Gasoline inventories added a surprise for this time of year- landing at 837,000 bbl, according to the latest EIA data. The Mid-Atlantic and Northeast were the only regions to see an inventory build. At 64 million bbl in total, the region is sitting on a 1.5 million surplus, which is helping to keep gas prices flat and cheaper than earlier this summer.

Rockies

After weeks of steady increases, gas price averages in Utah (-2 cents), Wyoming (-1 cent) and Idaho (-1 cent) have dropped, though not by much. Conversely, prices are up on the week for motorists in Colorado (+3 cents).

The discrepancy in pump price can be attributed, in part, to declining inventory level. Totaling 5.9 million bbl, regional inventories sit at their lowest level since August 2014. The drop has contributed to the rise in prices in some states and toward small decreases in both Idaho’s ($3.25) and Utah’s ($3.18) very expensive state averages.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased 45 cents to settle at $69.80. Oil prices reflected modest gains last week, following the release of EIA’s report, which showed U.S. crude inventories fell nearly 2.6 million bbl. The U.S. also saw gasoline production increase last week, averaging 10.2 million barrels per day and refinery capacity sitting at 93.6%. Another sign of increased U.S. production came with the gain of two oil rigs bringing the U.S. total to 862 according to Baker Hughes.

International factors are also impacting global supply and demand for crude oil as Iranian oil exports drop as a result of sanctions. The market may react to tightened supply and pressure prices higher as a result of the next round of U.S. economic sanctions against Iran that are expected in November.

Market watchers will keep a close eye on the impacts of additional Iran sanctions and the storm in the Gulf of Mexico. Both factors could affect prices at the pump moving forward.

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.

2018 AAA Gas Watchers Guide Provides Tips to Conserve Fuel and Save Motorists Money

WASHINGTON (August 29, 2018) – AAA forecasts that the national gas price average will drop to $2.70 this fall and has the potential to drop even more. That is 14-cents less a gallon compared to today’s price and more than a quarter cheaper than this year’s recorded high of $2.97 set in May.

Additional Resources

• Gas Price Forecast graphics: 1 | 2
• 2018 Gas Watcher’s Guide

“Cheaper-to-produce gasoline and relatively stable crude oil prices in August, combined with an anticipated drop in consumer gasoline demand post-Labor Day, means consumers will see savings when they fill-up at the pump this fall,” said Jeanette Casselano, AAA spokesperson. “However, several outliers can reverse this forecast, including crude oil prices, geopolitical tensions and the mere threat of a hurricane.”

2018 gas prices have been significantly more expensive than 2017. In fact, the year-to-date-national gas price average ($2.73) is 41-cents more. Trends for year-over-year state averages include:

• The top 10 states with the largest year-over-year difference in gas price averages are mostly West Coast, Northeast or Mid-Atlantic states: California (+57 cents), Hawaii (+54 cents), Indiana (+49 cents), Arizona (+48 cents), Oregon (+46 cents), Connecticut (+45 cents), Rhode Island (+45 cents), Utah (+45 cents) and Massachusetts (+44 cents).
• Four Great Lakes and Central and one Southern state carry the smallest year-over-year difference in gas prices: South Dakota (+37 cents), Missouri (+37 cents), Louisiana (+36 cents), Iowa (+36 cents) and Nebraska (+35 cents).

What will drive pump prices down this fall?

Part of the anticipated drop in fall pump prices is due to the switchover to winter-blend gasoline in mid-September. The difference between summer- and winter-blend gasolines involves the Reid Vapor Pressure (RVP) of the fuel. RVP is a measure of how easily the fuel evaporates at a given temperature. The more volatile a gasoline (higher RVP), the easier it evaporates. Winter-blend fuel, which is cheaper to produce, has a higher RVP because the fuel must be able to evaporate at low temperatures for the engine to operate properly, especially when the engine is cold.

In addition, the arrival of fall historically means a drop in consumer gasoline demand as summer road trips and vacations subside. 

What could prevent cheaper gas prices from coming to a pump near you?

• Crude Market Volatility: Much of 2018 has brought volatility to the domestic and global crude markets, as market watchers try to glean insight into forces that will shape global supply this fall. These forces include:
  • Venezuela is a major crude producer for the Western Hemisphere, but its collapsing economy could halt its crude production.
  • Organization of Petroleum Exporting Countries (OPEC) announced an increase in production over the summer, but slower-than-expected production growth could contribute to higher crude prices during the second half of the year.
  • Geopolitical uncertainty in the Middle East and around the globe could disrupt vital crude flows.
• Iran Sanctions: When President Trump announced that the U.S. would withdraw from the Iran Nuclear Deal in May, the decision sent the crude markets into upheaval. In August, the first round of re-imposed sanctions on the country, which target Iran’s financial sector, went into effect and led to a brief uptick in crude prices. The next round of sanctions, currently scheduled to take effect in November, will target Iran’s energy sector – including its crude exports – and will likely have a more sustained impact on crude prices. If and when those sanctions take effect, crude prices will likely surge over an expected reduction in Iranian crude exports and increased tension in the region that could destabilize global crude flows.
• Updated Hurricane Forecast: The National Oceanic and Atmospheric Administration’s Climate Prediction Center predicts a total of 9–13 named storms (winds of 39 mph or greater of which 4-7 will become hurricanes) including up to two major hurricanes (winds of 111 mph or greater). An average six-month hurricane season produces 12 named storms, of which six becomes hurricanes, including three major hurricanes. The mere threat of a hurricane in the U.S. would cause pump prices to spike, likely regionally, due to constrained supply and delivery challenges.

AAA 2018 Gas Watcher’s Guide

In time for fall, AAA is releasing the 2018 Gas Watcher’s Guide with tips for conserving fuel, saving money and maintaining fuel efficiency. The Guide offers these tips – and many more – for motorists to keep in mind as they fill-up at the pump:

• If your vehicle’s engine does not require premium or mid-grade fuel, don’t buy it. Using anything other than regular grade is simply a waste of money.
• Don’t top off your gas tank. Stop filling after the automatic nozzle shuts off the second time.
• If you have to replace a gas cap, make sure it is the right one for your car. An ill-fitting cap will increase emissions and trigger the “check engine” light.
• Keep track of gas mileage. If you notice a sudden decrease in fuel economy, have your vehicle checked by a technician to ensure it is operating properly.

Motorists can find current gas prices at GasPrices.AAA.com and 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.

Motorists across the country continue to see their local pump prices dropping. On the week, state gas price averages declined as much as four cents while the national gas price average held steady at $2.84, which is two-cents cheaper than a month ago, but 48-cents more than a year ago.

“With Labor Day approaching, motorists could see a small swing towards higher gas prices, but any jump should not last past the holiday weekend,” said Jeanette Casselano, AAA spokesperson.

Last year’s Labor Day weekend saw gas prices spike, but that was due to Hurricane Harvey. As it battered the Southeast, it shut down refineries and pipelines driving gas prices toward their highest point of 2017 ($2.67). Despite no hurricane activity this Labor Day weekend, gas prices will be at their highest point for the holiday since 2014.

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii($3.76), California ($3.60), Washington ($3.37), Alaska ($3.32), Idaho ($3.26), Oregon ($3.25), Utah ($3.20), Nevada ($3.19), Connecticut ($3.04) and Pennsylvania ($3.03).
• The nation’s top 10 largest weekly changes are: Ohio (+10 cents), Michigan (+5 cents), Wyoming (+4 cents), Florida (-4 cents), Colorado (+3 cents), South Dakota (-3 cents), Georgia (-3 cents), Kansas (-3 cents), Missouri (-3 cents) and Utah (+2 cents).

West Coast

Pump prices in the West Coast region are among the highest in the country: Hawaii ($3.76), California ($3.60), Washington ($3.37), Alaska ($3.32), Oregon ($3.25), Nevada ($3.19) and Arizona ($2.86). When compared to last week, most pump prices in the region are flat. Alaska and Arizona had the biggest changes, dropping by a penny each.

According to the Energy Information Administration’s (EIA) petroleum status report for the week ending on August 10, inventories of gasoline in the region decreased by 200,000 bbl. They now sit at 30.1 million bbl, which is four million bbl higher than total levels at this time last year. Higher supplies will help offset potential price spikes in the region if demand increases in the run-up to Labor Day.

Additionally, the impact of Hurricane Lane on Hawaii’s gasoline refining and delivery systems has been minimal. Par Pacific, Hawaii’s largest refinery, closed as a safety precaution over the weekend, but it has since restarted.

Great Lakes and Central

Five states in this region land on this week’s top 10 list of states with the largest changes: Ohio (+10 cents), Michigan (+5 cents), South Dakota (-3 cent), Kansas  (-3 cents) and Missouri (-3 cents). Among the Great Lakes and Central states, gas price averages are as expensive as $2.94 in Michigan, to as cheap as $2.57 in Missouri.

Michigan (-9 cents), South Dakota (-7 cents) and Kentucky (-7 cents) lead the Great Lakes and Central states with the largest decrease in month-over-month prices and rank among the top five states in the country. Ohio (+3 cents) is the only state in the region to be paying more compared to the end of July.

The region had the largest build in gasoline inventory of any in the country adding 1.3 million bbl, according to the EIA. At 53.4 million bbl, inventories are at one of the highest levels of the year for the Great Lakes and Central region.

South and Southeast

With the exception of Oklahoma (+2 cents) and Texas (+1 cent), all South and Southwest states’ gas price averages are cheaper on the week. Florida (-4 cents) and Georgia (-3 cents) saw the biggest drops in the region and both states land on the top 10 list of states with the largest weekly changes.

Gas prices in the region are dropping as demand slips and inventory levels continue to build for three straight weeks. With the addition of half a million bbl, total South and Southeast gasoline inventories sit at 81.5 million bbl – a level not seen since early July. However, the coming weeks could bring major year-over-year surpluses in inventories when compared to last August’s major hurricane activity that shut down regional refineries and pipelines.

Mid-Atlantic and Northeast

Gas price averages are relatively flat across the Mid-Atlantic and Northeast states. Prices dropped as much as two cents on the week, but only in Tennessee. The majority of states report gas price averages only a penny cheaper since last Monday, except in Vermont ($2.91) and Rhode Island ($2.89) which held steady.

While the national year-over-year difference in gas price averages is nearly 50-cents higher, a handful of Mid-Atlantic and Northeast states are paying more than this average. Motorists in Connecticut (+56 cents), Massachusetts (+54 cents), Delaware (+54 cents), Rhode Island (+53 cents), Vermont (+-52 cents) and New York (+51 cents) are seeing the largest yearly differences in the region.

Similar to pump prices, gasoline inventories in the region remain relatively flat. EIA reports total inventories drew 57,000 bbl. Levels hold steady at one of the lowest points for this summer at 63.2 million bbl.

Rockies

Unlike the majority of the country, gas prices continue to increase for many states in the Rockies. Since the beginning of August, Idaho (+14 cents) and Utah (+12 cents) have seen large jumps in pump prices. Part of the increase can be attributed to local refinery maintenance combined with high tourism season in the region this time of year.

On the week, all states but Montana ($2.94) are paying more at the pump: Wyoming (+4 cents), Colorado (+3 cent), Utah (+3 cents) and Idaho (+2 cents).

Gasoline inventories continue to decrease with the latest EIA data reporting a total of 6.1 million bbl. That is the lowest level on record for the Rockies region since August 2014.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased 89 cents to settle at $68.72. A weak dollar contributed to last week’s price gain. Moreover, following the release of EIA’s weekly report that showed total domestic crude inventories fell by 5.8 million bbl during the previous week, crude prices increased. If this week brings a continued decline in crude stocks, crude prices could surpass $70 per barrel.

In related news, according to Baker Hughes, Inc., the U.S. lost nine oil rigs last week, bringing the total to 860. Currently, there are 101 more active rigs than last year at this time.

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.

As summer slows to an end, gas prices across the country are getting less expensive. Today’s national gas price average is $2.84, which is three cents less than at the beginning of the month. With the exception of a handful of states, the majority of motorists are seeing slow, but steady pump price drops during the last few weeks.

“Compared to July, consumer demand for gasoline is weaning and prices are following suit,” said Jeanette Casselano, AAA spokesperson. “The national average is expected to keep moving lower, especially with the switchover to lower grade gasoline in September.”

In September, gas stations will start selling winter-blend gasoline. This blend, which is cheaper to produce, contains a fuel that evaporates at low temperatures for vehicle engines to operate properly, especially when the engine is cold.

The national gas price average is saving motorists two-cents on the week and one-cent on the month, but motorists are paying 50-cents more than this time last year.

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii($3.76), California ($3.60), Washington ($3.38), Alaska ($3.34), Oregon ($3.25), Idaho ($3.23), Nevada ($3.19), Utah ($3.18), Connecticut ($3.05) and Pennsylvania ($3.04).
• The nation’s top 10 largest weekly changes are: Michigan (-10 cents), Illinois (-7 cents), Utah (+6 cents), Florida (-5 cents), Delaware (-5 cents), Ohio (+4 cents), South Dakota (-4 cents), Georgia (-3 cents), Oklahoma (-3 cents) and South Carolina (-3 cents).

West Coast

Motorists in the West Coast region are paying some of the highest pump prices in the country: Hawaii ($3.76), California ($3.60), Washington ($3.38), Alaska ($3.34), Oregon ($3.25), Nevada ($3.19) and Arizona ($2.87). When compared to last week, most pump prices in the region are down. Alaska (-3 cents) saw the largest drop, followed by Arizona and Oregon dropping two cents each. Idaho (+2 cents) saw the largest price increase.

According to the Energy Information Administration’s (EIA) petroleum status report for the week ending on August 10, inventories of gasoline in the region fell by 100,000 bbl. They now sit at 30.3 million bbl, which is nearly four million bbl lower than total levels at this time last year. Slowing demand has reduced stocks slightly in the region, but as supplies tighten, any supply shocks could make the market more volatile this week and force prices to spike.

Great Lakes and Central

Gas prices are as much as a dime cheaper for motorists in the Great Lakes and Central states, with the exception of Ohio (+4 cents) and Indiana (+1 cent) on the week.  Michigan (-10 cents), Illinois (-7 cents) and South Dakota (-4 cents) carry the largest declines in the region.

Prices are pushing down as the EIA reports inventories (at 53 million bbl) are not only seeing a year-over-year surplus, but levels are ahead of the five-year average. In fact, this is the highest inventory reported for the region in the mid-August timeframe since 1999.

However, strong inventory levels may not be a consistent trend. The region’s refinery rates slowed slightly on the week ahead of the start of turnaround season, which will ultimately bring cheaper gas prices for motorists this fall and winter.

South and Southeast

All motorists in the South and Southeast region are saving pennies at the pump with prices as much as a nickel cheaper on the week in Florida. Georgia, Oklahoma and South Carolina all saw their gas price averages drop three cents since last Monday. These four states land on the top 10 list of states with the largest weekly change.

Motorists in the South and Southeast region are seeing cheaper prices at the pump as inventories built for a second week in a row, reported the EIA. Adding half a million bbl, total inventories sit at 80.1 million bbl, which is the highest level seen since the Independence Day holiday.

Despite this week’s cheaper prices, some motorists in the South and Southeast are paying as much as 52-cents more to fill up compared to last August: New Mexico (+52 cents), Florida (+52 cents) and Georgia (+51 cents). Regardless, the region continues to carry some of the cheapest state gas price averages in the country.

Mid-Atlantic and Northeast

All motorists in the Mid-Atlantic and Northeast are paying one to five cents less this week to fill-up. With a nickel drop, Delaware lands on the top 10 states list with the largest changes in gas prices on the week. Maryland, Washington, D.C. and Tennessee (-3 cents) had the second largest drop in the region.

Mid-Atlantic and Northeast state gas price averages range from as expensive as $3.05 in Connecticut to as cheap at $2.60 in Virginia.

With an 800,000 bbl draw, gasoline inventory levels now sit at 63.2 million bbl – the lowest levels reported in the region by the EIA since early May.

Rockies

Utah (+5 cents) and Idaho (+2 cents) are two of only four states in the country to see gas prices jump on the week. The increases are high for the region especially considering gas price averages held steady since last Monday in Wyoming ($2.95), Montana ($2.94) and Colorado ($2.80).

Gasoline inventories drew down for a fourth week dropping levels to the lowest of the year for the region. At 6.5 million bbl, inventories are on par with the five-year average. As previously reported, gas prices will likely push up as the tourism season draws to a close.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased 45 cents to settle at $65.91. Oil prices ended the week with slight gains due to a softening dollar, after tumbling midweek following new data from the EIA that showed domestic crude oil inventories grew by 6.8 million bbl last week.

The unusually high growth in crude inventories caught market observers by surprise, raising concerns that summer demand may be waning. At 414.2 million bbl, crude inventories in the U.S. are about 52 million bbl lower than they were at this point last summer, which has contributed to higher gas prices this summer. Domestic crude production topping 10.9 million b/d and imports surging to just over 9 million b/d gave total crude inventories their boost last week. If these trends continue into this week, crude inventories may show more growth, which would likely push domestic crude prices lower.

In related news, according to Baker Hughes, Inc., the U.S. added no oil rigs last week, leaving the total unchanged at 869. Currently, there are 106 more active rigs this year than last year at this time.

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.

The national gas price average has held relatively flat for the last two weeks. Today’s national average is $2.86. The Energy Information Administration’s (EIA) latest reports detail a drop in consumer gasoline demand and a build in gasoline inventories. In fact, this was the first increase in inventories in six-weeks with a substantial addition of 3 million bbl.

“With a flat national average, U.S. gasoline supply and demand suggest they are balancing,” said Jeanette Casselano, AAA spokesperson. “But that’s not to say that we could not see spikes in demand closer to Labor Day as motorists squeeze in those final road trips.”

On the week, states are seeing pump price jumps as high as eight cents and drops as much as a dime. Today’s gas price average is one-cent less than last week, three-cents less than one month ago and 51-cents more than this time last year.

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii($3.76), California ($3.61), Washington ($3.39), Alaska ($3.36), Oregon ($3.27), Idaho ($3.22), Nevada ($3.19), Utah ($3.12), Connecticut ($3.06) and Pennsylvania ($3.06).
• The nation’s top 10 largest weekly changes are: Ohio (-10 cents), Indiana (-8 cents), Michigan (+7 cents), Idaho (+7 cents), Florida (+6 cents), Utah (+4 cents), New Mexico (+4 cents), Missouri (-3 cents), Delaware (-3 cents) and South Carolina (-3 cents).

West Coast

Pump prices in states in the West Coast region are among the highest in the country: Hawaii ($3.76), California ($3.61), Washington ($3.39), Alaska ($3.36), Oregon ($3.27), Nevada ($3.19) and Arizona ($2.89). When compared to last week, all pump prices in the region are down. Arizona (-2 cents) saw the largest drop.

According to EIA’s petroleum status report for the week ending on August 3, inventories of gasoline in the region grew by 200,000 bbl. They now sit at 30.4 million bbl, which is nearly four million bbl higher than total levels at this time last year. Growing supplies will provide a cushion for price fluctuations, which could help pump prices stabilize if there are any shocks to regional supply this week.

Great Lakes and Central

On the week, gas prices across the Great Lakes and Central states are seeing declines or stabilization. Michigan (+7 cents) and Illinois (+1 cent) were the only states to see an increase in the region. Ohio (-10 cents), Indiana (-8 cents) and Missouri (-3 cents) have the largest weekly decrease in pump prices in the country and the region.

The majority of states across the country are paying less to fill-up at the pump compared to last month with four Great Lakes and Central states landing on the top five list: Ohio (-18 cents), Indiana (-15 cents), Kentucky (-10 cents) and Missouri (-7 cents).

With a substantial 1.7 million bbl build, gasoline inventories are above the 53 million bbl mark for the first time in a month. In fact, this was the first build for the region since the end of June and contributed to this week’s cheaper or stable prices across the Great Lakes and Central states.

South and Southeast

The majority of states in the South and Southeast saw gas prices drop between one and two cents on the week. However, some states saw prices increase close to a nickel or more: Florida (+6 cents), New Mexico (+4 cents), and Louisiana (+2 cents).

Of the top 10 cheapest state gas price averages this week, seven are in the South and Southeast region: Mississippi ($2.56), South Carolina ($2.57), Alabama ($2.57), Arkansas ($2.59), Texas ($2.62), Louisiana ($2.62) and Oklahoma ($2.62)

The EIA reports regional inventory increased by 1.3 million bbl, lifting regional levels back above 79 million bbl total and pushing the majority of gas price state averages down. Despite the increase, total levels are at a 2.1 million bbl deficit compared to this time last year.

Mid-Atlantic and Northeast

Gas prices are mostly flat across the Mid-Atlantic and Northeast region with eight states seeing two to one cent pump price drops while seven states’ gas price averages held flat on the week. Delaware (-3 cent) saw the largest change of any state in the region.

Four states in the region currently carry gas prices above the $3 mark: Connecticut ($3.06), Pennsylvania ($3.06), Washington, D.C. ($3.03) and New York ($3.01).

Pump prices and inventories remained relatively flat at 64 million bbl on the week, according to the latest EIA data available. Total inventory levels are on par with levels this time last year. If they tighten, prices would likely increase.

Rockies

Idaho ($3.22) and Utah ($3.12) are among the top 10 states with the most expensive gas prices in the country. Both of these states saw pump prices jump on the week – seven and four cents respectively, along with Wyoming (+1 cent).  Montana’s ($2.94) gas price average dropped a penny while Colorado’s ($2.80) gas price average held flat since last Monday.

However, compared to a year ago, gas prices are much more expensive. Utah (+59 cents), Idaho (+57 cents) and Wyoming (+57 cents) are on the top 10 list for largest year-over-year change in gas prices. Gas prices are nearly 50 cents or more in Montana (+53 cents) and Colorado (+47 cents).

Gasoline inventories took the largest plunge since the end of June with a nearly 300,000 bbl drop. EIA reports that regional inventory levels are at the lowest levels of the year. If they keep pushing down, which is likely as peak tourism season in the region draws to a close, gas prices may increase.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased 82 cents to settle at $67.63. Oil prices took a slight step back last week after EIA’s report showed a smaller-than-expected drawdown of crude inventories. Falling approximately 1.35 million bbl, total crude inventories now sit at 407.4 million bbl, which is roughly 68 million bbl lower than where they were this time last year. Lower crude stocks, amid high global crude demand, have helped to increase global crude prices this year over last. However, if total domestic crude inventories continue to disappoint the market this week, oil prices may slide further.

In related news, according to Baker Hughes, Inc., the U.S. added 10 oil rigs last week, bringing the total to 869. Currently, there are 101 more active rigs this year than last year at this time.

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.

At 9.88 million b/d, gasoline demand last week was near an all-time record high according to the Energy Information Administration (EIA). More so, the latest EIA data shows gasoline inventories tightening from 240 million bbl at the end of June down to 231 million bbl at the end of July. The boost in demand and drop in inventory have driven the national gas price average to $2.87, which is the most expensive gas price seen in August since 2014.

“We are likely going to see an end of summer pump price rally as inventories continue to tighten, especially on the East Coast,” said Jeanette Casselano, AAA spokesperson. “This week’s EIA demand and inventory reports will give further indication of how much higher the national gas price average could jump before summer is over.”

While today’s gas price average is one-cent more than last week, it is the same price as one month ago, yet 52-cents more than this time last year.

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii($3.76), California ($3.62), Washington ($3.40), Alaska ($3.37), Oregon ($3.28), Nevada ($3.20), Idaho ($3.15), Utah ($3.08), Connecticut ($3.07) and Pennsylvania ($3.06).
• The nation’s top 10 largest monthly changes are: New Mexico (-11 cents), Arizona (-10 cents), Delaware (+9 cents), Utah (-7 cents), South Carolina (+6 cents), Georgia (+5 cents), Nevada (-5 cents), Colorado (-5 cents), Kentucky (-5 cents) and Alabama (+4 cents).

West Coast

Motorists in states in the West Coast region are paying some of the highest pump prices in the country: Hawaii ($3.76), California ($3.62), Washington ($3.40), Alaska ($3.37), Oregon ($3.28), Nevada ($3.20) and Arizona ($2.91). When compared to last week, most gas prices in the region are down or flat. Hawaii and Arizona saw the largest drops at a penny each.

According to EIA’s petroleum status report for the week ending on July 27, inventories of gasoline in the region dropped by 400,000 bbl. They now sit at 30.2 million bbl, which is nearly 3.5 million bbl lower than total levels at this time last year. Tighter supplies leave little cushion for price shocks, which could increase prices at the pump if supply becomes more constrained.

Great Lakes and Central

Unlike most states in the country, Michigan’s gas price average dropped quite a bit on the week: eight cents. Now, Michigan ($2.92) has fallen from the most expensive Great Lakes and Central state to the second spot behind Illinois ($2.94).

With the exception of Michigan, Kentucky (-2 cents) and Kansas (-1 cent) all state gas price averages in the Great Lakes and Central region are more expensive compared to last Monday. The largest jumps on the week were Minnesota (+3 cents), Wisconsin (+2 cents) Illinois (+2 cents) and South Dakota (+2 cents).

Gasoline inventories continue to tighten in the region following the fourth consecutive weekly draw. Total inventories register at the 51 million bbl mark. While this is the region’s lowest measurement for the year, it is on par with levels last year at this time, according to EIA data.

South and Southeast

For a second week, pump prices are on the rise in the South and Southeast. With a six-cent increase, Georgia ($2.78) has the largest jump of any state in the country while South Carolina (+3 cents) has the ninth largest. Arkansas ($2.59), Texas ($2.63) and New Mexico ($2.75) were the only states in the region to see prices hold steady on the week.

Year-over-year, gas prices are 54-cents (Georgia) to 45-cents (Louisiana) more expensive in the South and Southeast.

With a draw of 700,000 bbl, the EIA reports regional inventory is the lowest level since before Memorial Day at 78.3 million bbl. Inventories have been tightening for two weeks alongside rising gas prices. The South and Southeast have not seen levels below 78.3 million bbl during the month of July since 2015.

Mid-Atlantic and Northeast

Five Mid-Atlantic and Northeast region states land on this week’s top 10 largest jumps: Delaware (+6 cents), Tennessee (+4 cents), North Carolina (+3 cents), Maryland (+3 cents) and Pennsylvania (+2 cents). Rhode Island (-1 cent) was the only state to see a decrease at the pump while many other states’ averages held steady on the week: West Virginia ($2.86), Massachusetts ($2.90), Washington, D.C. ($3.05) and Connecticut ($3.07)

Motorists in Delaware ($2.83) are feeling the biggest pain at the pump. Compared to this time last month, gas prices are nine-cents more expensive for the state. That is the largest month-over-month gas price difference not only for the region, but also the country.

During July, total gasoline inventory levels in the region dropped from 66.4 million bbl to 64 million bbl. The latest EIA numbers report inventories were drawn down by 1.2 million bbl – the largest draw of any region for the week ending July 27. With gasoline import numbers slowing, this region could see inventory levels really tighten and gas prices amplify despite having a year-over-year surplus.

Rockies

Pump prices in the Rockies region are mostly trending higher on the week following declines last week: Idaho (+4 cents), Colorado (+1 cent) and Montana (+1 cent). Utah’s state average dropped a penny to $3.08 while Wyoming held at $2.94.

With a draw of 82,000 bbl, inventory levels sit right at 7 million bbl. A draw this week would mean levels would dip below this mark for the first time in six weeks and encourage more expensive pump prices.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI dropped 47 cents to settle at $68.49. Oil prices made some gains last week, but are ending at a loss after EIA reported that total oil inventories across the country grew by 5.6 million bbl last week. The build in crude stocks was supported by crude exports falling to 1.31 million b/d.

Crude price losses may not extend into this week as global supply concerns re-emerge. One concern is that based on recent reports, Saudi Arabia’s crude output unexpectedly fell 200,000 b/d to 10.3 million b/d last month. Saudi Arabia is the largest producer in OPEC, so a drop in its production means that the planned increase in crude production that the cartel and its partners announced in June may be moving slower than expected. Additionally, an announcement on U.S.-imposed sanctions against Iran is expected early this week, which could heighten geopolitical concerns in the crude market.

In related news, according to Baker Hughes, Inc., the U.S. lost two oil rigs last week, bringing the total to 859. Currently, there are 94 more active rigs this year than last year at this time.

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.

As U.S. gasoline demand strengthened and supply declined, the national gas price average jumped two-cents on the week to land at $2.86. According to the latest Energy Information Administration (EIA) report, total crude inventories fell on the week and now register at 405 million bbl, which is 80 million bbl lower than levels at the same time last year.

“As crude and gasoline inventories tighten, motorists can expect gas prices to trend higher and remain volatile,” said Jeanette Casselano, AAA spokesperson. “On the week, pump prices increased as much as 11-cents for some states with others seeing decreases of up to four-cents.”

While today’s gas price average is one-cent less than last month, it is 55-cents more than a year ago and crude oil prices are up $20/bbl compared to this time last year.

Quick Stats

• The nation’s top 10 most expensive markets are: Hawaii($3.78), California ($3.62), Washington ($3.40), Alaska ($3.37), Oregon ($3.29), Nevada ($3.20), Idaho ($3.11), Utah ($3.09), Connecticut ($3.07) and Washington, D.C. ($3.05).
• The nation’s top 10 largest weekly changes are: Michigan (+11 cents), Indiana (+9 cents), Ohio (+8 cents), Kentucky (+6 cents), Illinois (+4 cents), Kansas (+4 cents), Delaware (-4 cents), New Mexico (-3 cents), West Virginia (+3 cents) and South Carolina (+3 cents).

West Coast

Pump prices in states in the West Coast region are among the highest in the country: Hawaii ($3.78), California ($3.62), Washington ($3.40), Alaska ($3.3), Oregon (3.29), Nevada ($3.20) and Arizona ($2.92). Yet on the week, all gas prices in the region are down. Arizona (-2 cents) saw the largest decrease. Washington, Nevada, and Alaska are close behind as each dropped by a penny.

According to EIA’s petroleum status report for the week ending on July 20, inventories of gasoline in the region grew by 300,000 bbl. They now sit at 30.6 million bbl, which is nearly 3.5 million bbl higher than total levels at this time last year. The surplus will likely help guard against price spikes in the event that supply tightens in the region this week.

Great Lakes and Central The seven Great Lakes and Central states that saw large declines last week are seeing higher pump prices this week. In fact, Michigan’s decreases from last week were reversed with motorists seeing an 11-cent jump, bringing the state’s average to the $3 mark for the first time since July 15.

While no states in the region saw prices decrease on the week, North Dakota ($2.85) was the one to see the state gas price average hold steady.

Gasoline inventories in the region declined for a third week. With the drop, total inventories are at the lowest mark of the year at 51.6 million bbl, a 1.2-million bbl year-over-year deficit. If inventories continue to tighten, motorists in the region can expect gas prices to climb.

South and Southeast

Pump prices are more expensive for all states across the South and Southeast except in New Mexico (-3 cents) and Florida (-1 cent). The largest pump price increase on the week was three-cents in South Carolina ($2.57) and Texas ($2.64).

Compared to one month ago, the majority of states in the region are paying more to fill up, with South Carolina seeing the largest month-over-month increase at five-cents. Motorists in New Mexico (-13 cents) and Texas (-1 cent) are the only states to see a drop in gas prices on the month.

Inventories dropped by 900,000 bbl on the week, but remain above the 79 million bbl mark. More so, the region faces a substantial 2.6 million bbl year-over-year deficit. The week’s draw combined with the deficit is contributing to the increasing pump prices across the region.

Mid-Atlantic and Northeast

Gas prices are volatile across the Mid-Atlantic and Northeast region. This week’s top 10 states in the country with the biggest changes in gas prices include Delaware (-4 cents) and West Virginia (+3 cents). However, most states in the region saw gas prices hold steady on the week: Virginia ($2.61), Tennessee ($2.61), North Carolina ($2.67), New Hampshire ($2.80), Vermont ($2.90), New York ($3.00) and Connecticut ($3.07).

Four states in the region carry gas prices that are $3 or more: Connecticut ($3.07), Washington, D.C. ($3.05), Pennsylvania ($3.04) and New York ($3.00).

With a nearly one million bbl decline, the Mid-Atlantic and Northeast region saw the largest drop in gasoline inventories in the country on the week, according to EIA data. At 65.2 million bbl, the region has a 3 million bbl inventory surplus compared to last year at this time, which could continue to help stabilize gas prices in the region.

Rockies

In the Rockies region, all states’ gas price averages decreased or held steady on the week: Utah (-2 cents), Colorado (-2 cents), Wyoming (-2 cent), Idaho (-1 cent) and Montana (no change). Despite the positive shifts in gas prices lately, Idaho ($3.11), Utah ($3.09), Wyoming ($2.94) and Montana ($2.94) carry among the top 15 most expensive gas prices in the country.

Inventories remain above the 7million bbl mark, which is a 537,000 bbl year-over-year surplus and a contributing factor in the downward shift in gas prices.

Oil market dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased 92 cents to settle at $68.69. Oil prices trended higher with the release of EIA’s weekly report that total crude inventories fell by 6.2 million bbl and face a year-over-year deficit of 80 million bbl. The tightened domestic crude supply amid robust global gasoline demand and high global crude demand will likely sustain into the near future the more expensive crude oil prices, which are $20/bbl more compared to last year.

Additionally, the market will look at EIA’s supply data and July crude production data from OPEC and its partners — both of which will be released later this week — to determine how supply and demand are faring since the cartel announced that it would increase production to ease global crude price growth. Moreover, according to Baker Hughes, Inc., the U.S. added three oil rigs last week, bringing the total to 861. Currently, there are 95 more active rigs this year than last year at this time.

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.

Volatility is the trend for July gas prices as the rate for crude oil rises and drops amid lingering geopolitical concerns. In the U.S., the first half of the month saw pump prices increase from $2.85 to $2.89, while the second half is proving cheaper with the national gas price average down to $2.84 today. The national average has not been this low since early May.

“July gas prices have been on a roller coaster ride, but appear to be on a downward slope at the moment. If demand and supply stay consistent, prices have the potential to stabilize barring any major events – geopolitical or natural disasters,” said Jeanette Casselano, AAA spokesperson. “The market is also following this up and down trend lately. Last week, crude prices dropped below $70/bbl for the first time since June, but then returned above the price point to close out the week.”

On the week, Hawaii (+1 cent) was the only state to see gas prices increase, Montana ($2.93) was the only state whose gas price average held steady, while all other states saw prices drop as much as 13 cents.

Today’s national gas price average is four cents cheaper than last week, two cents cheaper than last month, but 57-cents more expensive than a year ago. Motorists can find gas for $2.76 or more at 52 percent of stations across the country.

Quick Stats

• The nation’s top 10 least expensive markets are: Alabama ($2.54), South Carolina ($2.54), Mississippi ($2.54), Arkansas ($2.58), Louisiana ($2.58), Oklahoma ($2.60), Virginia ($2.61), Tennessee ($2.61), Texas ($2.61) and Missouri ($2.61).
• The nation’s top 10 largest monthly changes are: New Mexico (-13 cents), Arizona (-12 cents), Nevada (-8 cents), Delaware (+8 cents), Utah (-8 cents), Nebraska (-7 cents), Ohio (+7 cents), Texas (-6 cents), Idaho (-6 cents) and California (-5 cents).

West Coast

Motorists in states in the West Coast region are paying the most expensive pump prices in the country: Hawaii ($3.78), California ($3.63), Washington ($3.41), Alaska ($3.38), Oregon (3.29), Nevada ($3.20) and Arizona ($2.94). Still, gas price averages in the majority of states in the region have declined on the week, with Arizona (-3 cents) leading the way. Only Hawaii (+1 cent) saw an increase.

According to the Energy Information Administration’s (EIA) petroleum status report for the week ending on July 13, inventories of gasoline in the region dropped by 500,000 bbl. They now sit at 30.3 million bbl, which is nearly 3.5 million bbl higher than total levels at this time last year. The surplus will likely help guard against price spikes in the event that supply tightens in the region this week.

Great Lakes and Central

Gas prices are dropping – and for some by a lot – on the week across the Great Lakes and Central states. Seven states in the region land on the top 10 largest weekly change in gas prices list: Ohio (-13 cents), Michigan (-11 cents), Indiana (-11 cents), Kentucky (-8 cents), Illinois (-7 cents) Missouri (-5 cents) and Nebraska (-4 cents).

Despite cheaper gas prices on the week, state gas price averages are nearly 50-cents or more expensive than a year ago. North Dakota ($2.85) and South Dakota ($2.87) have the largest year-over-year increase at 61- and 60-cents, respectively. Nebraska has the smallest year-over -year increase at 47-cents.

On the week, gasoline inventories in the region took a draw of 870,000 bbl and now face a 2.3 million bbl deficit, the only region in the country to have one according to EIA data. As regional gasoline inventories tighten, gas prices could see jumps.

South and Southeast

Across the South and Southeast states, gas prices range from as expensive as $2.77 in Florida to as cheap as $2.55 in Alabama. On the week, prices in the region are as much as four cents cheaper.

This week’s top four states with the cheapest gas averages in the country can be found in the South and Southeast region. Coincidentally, they are the same four states with the cheapest prices from one year ago with  motorists paying at least 50-cents more a gallon to fill-up, compared to a national average difference of nearly 60 cents.

Cheapest Gas Prices on July 23: 2017 vs. 2018

 
On the month, gasoline inventories in the region have drawn by 3.4 million bbl yet are 1.2 million bbl ahead of levels this time last year. Much of the decline in inventory levels can be attributed to high U.S. export levels.

Mid-Atlantic and Northeast

Gas prices are as much as five cents cheaper on the week across the Mid-Atlantic and Northeast states. Looking at prices compared to a month ago, most states in the region are seeing cheaper pump prices – as much as four cents less. On the other hand, six states are paying more, with Delaware seeing the largest month-over-month increase in the country: Delaware (+8 cents), West Virginia (+3 cents), Washington, D.C. (+3 cents), Pennsylvania (+1 cent), Maryland (+1 cent) and New Jersey (+1 cent).

Gasoline inventory sits at a healthy 66.3 million bbl with the EIA reporting a small 148,000 bbl draw in their latest report. Despite the region seeing a 2 million bbl surplus year-over-year, gas prices are more than 50-cents more than last summer, but the strong inventory levels may help to stabilize or drop gas prices in the coming week.

Rockies

On average, gas prices are 62-cents more expensive than a year ago for motorists filling up in states in the Rockies region. Wyoming (+69 cents) has the largest year-over-year difference in pump prices. On the week, there is a little relief at the pump with state gas price averages dropping in Colorado (-2 cents), Utah (-2 cents), Idaho (-2 cents) Wyoming (-1 cent) and Montana (-1 cent).

Inventories in the region built by a small 50,000 bbl on the week, according to EIA data. The build was not enough to move gas prices up. At 7.1 million bbl in total inventory, levels are 425,000 bbl ahead of last year. More so, during July 2017, the inventory levels in the region did not exceed 6.7 million bbl.

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.00 to settle at $70.46. Oil prices trended higher at the end of last week following news from EIA on record-breaking crude production in the U.S. At 11 million b/d, total crude production in the U.S. hit its highest rate ever recorded since the EIA began reporting its data. Moving into this week, analyst are continuing to keep an eye on the global supply restraints due to U.S.-imposed sanctions on Iran’s oil exports and ongoing d economic troubles in Venezuela, which could send crude production prices higher.

The U.S. dropped five oil rigs last week leaving today’s total at 858. In spite of this, with nearly 94 more active oil rigs over last year’s count, according to Baker Hughes, Inc., increased oil production shows few signs of slowing down through the second half of 2018. Growth in domestic oil production helped total crude inventories around the country increase by 5.8 million bbl last week, bringing the total to 411.1 million bbl.

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.