Tampa, FL – Mounting concerns about the increase in global COVID-19 Coronavirus cases and the reinstatement of lockdown policies in some countries has driven crude oil prices down to the lowest closing price – $35.00/bbl – since June. In comparison, last year at this time crude was pricing at about $20.00/bbl more expensive.
As crude prices decreased last week, the United States saw fluctuation in gasoline demand and supply.
Demand increased from 8.2 million b/d to 8.5 million b/d while supply decreased 90,000 b/d to 226 million bbl. Despite the jump in demand, motorists are paying less to fill up.
The national average pushed four cents cheaper to $2.12, while every state except South Dakota (+1 cent) saw gas prices hold steady or decrease.
“The national gas price average at the start of November has not been this cheap since 2004. If crude oil continues to push cheaper, we could see the national average drop below $2.00/gallon before the end of the year,” said Jeanette Casselano McGee, AAA spokesperson.
Across the country, state gas price averages are cheaper on the month and the week. Today, motorists can find gas for $2/gallon or less at 52% of gas stations.
- The nation’s top 10 largest weekly decreases: Ohio (-9 cents), Indiana (-8 cents), Washington, D.C. (-8 cents), Michigan (-7 cents), Kentucky (-6 cents), Texas (-4 cents), North Carolina (-4 cents), South Carolina (-4 cents), Tennessee (-4 cents) and Minnesota (-4 cents).
- The nation’s top 10 least expensive markets: Missouri ($1.79), Mississippi ($1.81), Texas ($1.81), Oklahoma ($1.81), Arkansas ($1.83), South Carolina ($1.84), Louisiana ($1.86), Alabama ($1.86), Tennessee ($1.87) and Kansas ($1.90).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 38 cents to settle at $35.79. Domestic crude prices decreased in light of market concern about increasing coronavirus infections worldwide, which could lower crude demand.
EIA’s weekly report has also contributed to the decline in prices after it showed that total domestic crude inventories grew by 4.3 million bbl to 492.4 million bbl. If demand concerns continue this week, crude prices will likely decrease again.
Motorists can find current gas prices along their route with the free 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.
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.
ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android.