Washington, D.C. – Crude oil prices dropped below $70.00/bbl at the end of last week in reaction to concerns about the delta variant, growing COVID-19 Coronavirus case numbers, and the possibility of potential lockdowns. While crude is a little cheaper, gas prices are still positioned to remain high in August.
Today’s national average is $3.19. That is the most expensive gas price average of the year as well as $1.02 more than a year ago, a nickel more than a month ago, and two cents more than a week ago.
Pump prices fluctuated across the county last week with states seeing as much as a nine-cent jump to a seven-cent decrease.
The variation in prices is partly attributed to the U.S. seeing an increase in demand and decrease in stocks, according to the Energy Information Administration (EIA).
“We continue to see very robust gasoline demand for the peak summer driving season,” said Jeanette McGee, AAA spokesperson. “The latest demand rate was 2% higher than the same time period in 2019, while gasoline stocks are about 1% below.”
August can be a busy month at the pump with school starting and others taking last-minute summer trips.
AAA offers these daily driving tips to help save on gas:
- Slow down and drive the speed limit. On the highway, aerodynamic drag causes fuel economy to drop off significantly as speeds increase above 50 mph.
- Avoid extended idling to warm up the engine. It is unnecessary and wastes fuel.
- When approaching a red light or stop sign, take your foot off the gas early and allow your car to coast down to a slower speed until it is time to brake.
- Accelerate smoothly with light to moderate throttle. This allows the automatic transmission to upshift into higher gears sooner, reducing engine rpm and saving fuel.
- AAA members can save at the pump by joining the Fuel Rewards at Shell program at AAA.com/Shell. Members save 30 cents per gallon on their first fill-up when they join between now and August 31st, 2021. As part of the Fuel Rewards program, AAA Members earn Gold Status ongoing and save five cents per gallon every day on each individual gas purchase of up to 20 gallons from participating Shell stations with no minimum fill-ups.
- The nation’s top 10 largest changes: Michigan (+9 cents), Colorado (+7 cents), Delaware (?7 cents), Ohio (+6 cents), Florida (+6 cents), Kentucky (+4 cents), Indiana (?4 cents), South Dakota (+3 cents), Nevada (+3 cents) and Maryland (?3 cents).
- The nation’s top 10 least expensive markets: Mississippi ($2.79), Louisiana ($2.82), Texas ($2.84), Alabama ($2.84), Missouri ($2.86), Arkansas ($2.87), South Carolina ($2.88), Oklahoma ($2.88), Tennessee ($2.89) and Kansas ($2.92).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 81 cents to settle at $68.28. A stronger dollar and market concern about the impact of new coronavirus infections on crude demand pushed prices lower at the end of last week.
Crude prices also declined after the EIA’s latest report showed that total domestic crude stocks increased by 3.6 million bbl to 439.2 million bbl.
For this week, crude prices could decrease further if the market continues to worry that crude demand will decline as restrictions are imposed to halt transmission of COVID-19 Coronavirus.
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 with more than 14 million members across 14 U.S. states, the province of Quebec, and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking, and financial services, travel offerings, and more.
ACG belongs to the national AAA federation with more than 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety.