At $2.85, the national gas price average is five cents cheaper than a week ago, 12-cents less than a month ago, but 58-cents more than a year ago. Gas prices have consistently been declining since Memorial Day. On the week, 49 states saw pump prices drop with and motorists in Indiana and Michigan saw double-digit declines.
Gas prices may be poised to drop even more following OPEC’s announcement that the cartel will increase production by 1 million b/d in the second half of 2018. However, that number may be revised closer to 600,000 b/d, as there is speculation that some producers – including Libya, Venezuela and Iran – will not be able to meet the quota increase. Regardless, the production increase is expected to decrease crude prices and in turn drive down gas prices later this year.
“The OPEC production increase will help to offset concerns of shrinking global supply caused by high global demand this year,” said Jeanette Casselano, AAA spokesperson. “For drivers in the U.S., pump prices likely will not see an impact immediately. Changes, and most likely not dramatic ones, are anticipated to hit pump prices late summer or early fall.”
The cartel made the production decision after the U.S., China and India voiced support for an increase to prevent an oil deficit that could stifle economic growth in the latter half of 2018. The production increase will occur ahead of this December’s expected dissolution of OPEC’s production reduction agreement, which has worked to reduce global oil supplies and increase the global price of crude since the beginning of 2017.
- The enter nation’s top 10 least expensive markets are: South Carolina ($2.50), Mississippi ($2.54), Alabama ($2.54), Oklahoma ($2.56), Louisiana ($2.57), Arkansas ($2.60), Tennessee ($2.60), Virginia ($2.61), Ohio ($2.61) and Missouri ($2.63).
- The buy Seroquel now nation’s top 10 largest weekly decreases are: Indiana (-14 cents), Michigan (-13 cents), Ohio (-9 cents), Illinois (-8 cents), Kentucky (-7 cents), Missouri (-6 cents), Florida (-5 cents), Texas (-5 cents), Kansas (-5 cents) and South Carolina (-5 cents).
South and Southeast states are seeing pump prices three to six cents cheaper on the week with Florida (-6 cents), Texas (-5 cents), South Carolina (-5 cents) and Georgia (-5 cents) seeing the largest decreases. In the region, state gas price averages range from as cheap as $2.50 in South Carolina to as expensive as $2.90 in New Mexico.
Compared to this time last year, gas prices are 49 to 70 cents more expensive: New Mexico (+70 cents), Oklahoma (+60 cents), Texas (+59 cents), Georgia (+59 cents), Arkansas (+57 cents), South Carolina (+57 cents) and Alabama (+55 cents). Florida (+49 cents) has the smallest year-over-year change.
Gasoline inventories made a substantial build with 3.4 million bbl, according to the latest EIA data. With a total of 83.6 million bbl, regional inventories sit at their highest mark since the end of March and about 1 million bbl ahead of this time last year.