Gas prices drop while demand rises: AAA
Prices for gas fell this week, reaching a national average of $4.67 twelve cents lower than the average of last week, as per new information by AAA.
The average national price is down 32 cents from one month ago, however it is $1.53 more than in the year before, AAA reported. In the last month, gasoline prices hit the record-setting new record that surpassed $5 per gallon and reached the highest level since AAA began keeping track of prices in the year 2000.
The recent drop in sales came despite an increase in demand for gasoline following the Fourth of July holiday as per AAA. Indeed, the firm predicted that a record-breaking 42 million Americans would be traveling to celebrate the holiday weekend.
“Usually, more people buying gas would lead to higher pump prices,” AAA spokesperson Andrew Gross said. “But the price for oil, the main ingredient in gasoline, has fallen and is hovering around $100 a barrel. Less expensive oil usually means less expensive gas.”
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A possible recession could lower the price of oil
In the week leading up to the 4th July holiday, demand for gas grew to 8.92 million barrels per day, increasing to 9.41 million barrels per day according to AAA. The total gas reserves in the United States fell to the amount of 2.5 million barrels during the same period.
“Typically, these supply/demand trends would put upward pressure on pump prices; however, falling oil prices have contributed to lower pump prices,” AAA declared in the report.
The West Texas Intermediate (WTI) (WTI), also known as the cost of oil, increased by $2.06 on Friday to $104.79 according to AAA. Even with the rise on Friday, the price was lower by nearly 4 dollars from the week prior.
“For this week, crude prices could continue to face strong headwinds if the market remains concerned that a potential recession will reduce demand for crude,” AAA declared. “If demand declines, crude prices will likely follow suit.”
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This is the place where gas price has seen the largest changes.
The cost of gas in the United States is declining, however, some states are experiencing more dramatic changes than other states. These are the 10 states with the highest drops in the cost of gas and how much on an average
- Texas 18 cents
- Ohio 17 cents in Ohio
- Illinois: 17 cents
- California 16 cents in California
- Wisconsin 15 cents in Wisconsin
- Indiana 15 cents in Indiana
- Kentucky 15 cents for Kentucky
- Alabama 15 cents
- Virginia: 14 cents
- Florida 14 cents in Florida
The cost of gasoline across the U.S. varies by location. The following are top 10 states that have the lowest gas prices:
- South Carolina: $4.18
- Georgia: $4.18
- Mississippi: $4.18
- Louisiana: $4.22
- Texas: $4.22
- Alabama: $4.25
- Arkansas: $4.26
- Tennessee: $4.28
- North Carolina: $4.31
- Kentucky: $4.37
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