Relief at the Pump? Gas Prices Continue Lowering For Now

According to a recent report by the American Automobile Association (AAA), prices at the pump fell by $0.05 down to $3.90 in the last week following stable global oil prices and domestic demand for gas.

A AAA spokesperson by the name of Andrew Gross stated, “Drivers are now benefiting from gas prices that are $1.11 less than their peak in mid-June, but now we need to keep an eye on the weather as hurricane season arrives. These storms can affect prices by disrupting oil production in the Gulf of Mexico and impacting large coastal refineries.”

Recent studies from AAA indicate that many drivers are making big changes to deal with the pressure and issues caused by high fuel prices at the pump. One recent survey shows that nearly ⅔ of U.S. adults claim to have changed their lifestyle or driving habits since March, with the top two changes combining errands when driving and driving less in general.

Data gathered from the Energy Information Administration (EIA) shows that the demand for gas rose from 9.12 million b/d to 9.35 million b/d in the last week, which is exceptionally similar to the previous year. Stock values for total domestic gasoline went down by almost 5 million bbl to 215.7 million bbl. Despite the rising demand for gas and the tightening of supplies, relaxing oil prices has dramatically assisted in lowering fuel prices at the pump. Drivers will likely continue to see pump prices fall should oil prices continue to creep lower.

Today, the national average is $0.51 less than the previous month, resting at $3.90. However, it is $0.74 higher than the previous year.

Top 10 Weekly National Decreases