for gas continue to decline due to fears of a COVID-19 global economic slowdown pushing oil into the mid $60s per barrel, a price that was not seen since the beginning of August.
According to AAA, the other factor that helped ease price pressures was the choice made by OPEC along with its oil producer partners to not cut production.
The national average price for one gallon ofplunged by 4 cents over the course of the week, to $3.35. For the average consumer, for were at their lowest since October 20.
“Consumers may be catching a break at the pump right now, but it’s not for a very good reason,” said Andrew Gross, AAA spokesperson. “A potential COVID-19 induced economic slowdown hurts everyone and could prompt OPEC to slash production if oil drop too low.”
On Thursday, OPEC and its allies, a group referred to as OPEC+, announced it would stick to its plan to boost production by 400,000 b/d in January. The move was likely in response to the Biden Administration’s call to increase supply to tame high fuel .
According to new data from the Energy Information Administration (EIA), total domesticstocks rose by more than 4 million bbl to 215,422 million bbl last week. Meanwhile, demand dropped from 9.3 million b/d to 8.8 million b/d. The decrease in demand contributed to falling , while lower also put downward market pressure on pump .
Today’s national average of $3.35 is seven cents less than a month ago and $1.19 more than a year ago.
The nation’s top 10 largest monthly decreases: Indiana (−21 cents), Michigan (−18 cents), Ohio (−17 cents), Washington, D.C. (−15 cents), Missouri (−14 cents), Texas (−13 cents), Iowa (−13 cents), Kansas (−12 cents), Oklahoma (−12 cents), and South Carolina (−12 cents).
The nation’s top 10 most expensive markets: California ($4.68), Hawaii ($4.34), Nevada ($3.91), Washington ($3.87), Oregon ($3.78), Arizona ($3.77), Alaska ($3.71), Idaho ($3.65), Utah ($3.62) and Pennsylvania ($3.57).
Oil Market Dynamics
At the close of last week’s formal trading session, WTI decreased 24 cents to settle at $66.26. oil decreased last week due to uncertainty of the COVID-19 omicron variant’s impact on demand and the announcement that OPEC+ will ramp up production by 400,000 b/d in January. Additionally, EIA reported minimal draws on . commercial oil inventories, which decreased by 900,000 bbl from the previous week to 433.1 million barrels. This week, oil could continue to fluctuate. Market watchers will keep a close eye on oil inventories and the impact that the omicron variant has on demand.
Motorists can find current gas 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.along their route with the free