Gas prices dropped about four cents from a week ago. The price at the pump is still 37 cents above a month ago, adding above $5 to the cost of a 15-gallon fill-up
AAA reported prospects of an economic slowdown, and lower consumption could bring down prices further.
Gas prices often rise in the period leading up to Memorial Day.
“The recent surge in oil costs took a break this week, with the price of oil tumbling back into the upper $70s per barrel,” said Andrew Gross, AAA spokesperson. “If this oil price trend continues, drivers may see falling gas prices.”
|Week Ago Avg.||$3.566||$4.008||$4.252||$4.088|
|Month Ago Avg.||$3.163||$3.621||$3.897||$3.942|
|Year Ago Avg.||$4.005||$4.451||$4.696||$5.081|
According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.94 to 8.52 million barrels a day last week.
Gas prices below$3.40 a gallon were available in a few locations, including a Sam’s Club in Dover, which was charging $3.32 a gallon for regular.
Meanwhile, total domestic gasoline stocks increased slightly by 1.3 million to 223.5 million barrels. Lower demand and supply growth would typically push pump prices down; however, elevated oil prices over the past month pushed them higher. It did not help that OPEC members agreed to cut production, boosting Russia as it continued the brutal war in Ukraine.
Meanwhile, refineries are returning to service from winter/spring maintenance. The EIA said total input rose last week by 330,000 barrels a day to 16.44 million barrels a day, a figure above last year.
More refinery operations will be restarted in the next three weeks, with some planned work extending into June. Among the refineries seeing turnarounds was the PBF site in Delaware City.
Oil prices fell Thursday amid ongoing market concerns that future interest rate increases could tip the economy into a recession, likely leading to reduced oil demand and prices.
To check out gas prices in your neighborhood, log on to https://cluballiance.aaa.com/public-affairs/gas-information