Gas price average drops to cheapest levels since April

(November 6, 2018) At $2.76, the national gas price average is at its cheapest in six months, according to AAA. On the week, motorists in every state but Hawaii are paying as much as a nickel less to fill-up. Today’s national average is six cents less than a week ago,15-cents less than a month ago but  24-cents more than a year ago. As demand continues to drop, gas prices could get even cheaper.

This price drop is happening at a time that analysts previously thought would likely see pump price increases due to the White House’s re-imposition of sanctions on Iran, some of which will target the country’s energy sector and impedes its ability to export oil.

However, in May, when the decision was announced (to take effect in November), the market reacted quickly with crude oil prices (WTI) spiking as high as $77/barrel this summer. At the same time, Iran’s exports began to dip. Today, they are reported to be about one million barrels a day less than in May while crude oil prices have stayed below $70 a barrel for two weeks.

“With the market anticipating and reacting to the pending Iran sanctions throughout the summer, motorists likely have seen the worst in terms of retail prices for the year,” said Jeanette Casselano, AAA spokesperson. “If the crude oil market remains steady, gas prices are likely to continue to fall as much as 10 cents in the near-term.”

That being said, should any factors cause an upward shift in crude oil prices, the cheaper gas prices would likely be a temporary trend.

Quick Stats

The nation’s top 10 largest weekly decreases are: Ohio (-12 cents), Michigan (-9 cents), Indiana (-9 cents), Delaware (-8 cents), Oklahoma (-8 cents), Texas (-7 cents), Maryland (-7 cents), Missouri (-7 cents), Florida (-7 cents) and Georgia (-7 cents).

The nation’s top 10 least expensive markets are: Delaware ($2.44), Missouri ($2.46), South Carolina ($2.46), Oklahoma ($2.47), Texas ($2.48), Louisiana ($2.49), Mississippi ($2.49), Alabama ($2.49), Arkansas ($2.51) and Virginia ($2.52).