Washington, D.C. – Following Labor Day weekend and the remnants of Hurricane Ida, the national gas price average has stabilized at $3.18, which is just 3 cents more expensive on the week.
The storm took about 13% of U.S. refinery capacity offline and while there are no firm re-start dates, refineries are expected to be back online this month.
“Historically, gas demand starts to decline in the fall as schools reopen and summer road trips end, which leads to less expensive gas prices,” said Jeanette McGee, AAA spokesperson. “Despite the dip in demand, the national average is expected to remain above $3.00/gallon especially as crude oil continues to price on the higher end.”
Motorists will welcome the cheaper gas prices following the most expensive summer at the pump in seven years.
|Year||National Average Memorial Day – Labor Day|
- The nation’s top 10 largest weekly increases: Ohio (+9 cents), New Mexico (+6 cents), Indiana (+6 cents), North Carolina (+6 cents), Tennessee (+5 cents), Louisiana (+5 cents), New York (+5 cents), Kentucky (+4 cents), Michigan (+4 cents) and Texas (+4 cents).
- The nation’s top 10 most expensive markets: California ($4.39), Hawaii ($4.06), Nevada ($4.01), Washington ($3.89), Utah ($3.81), Idaho ($3.79), Oregon ($3.77), Alaska ($3.69), Colorado ($3.60) and Wyoming ($3.57).
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 70 cents to settle at $69.29. Although crude prices ended the day lower, on the week crude prices were boosted by a weak dollar and the release of government data that showed weekly unemployment claims had fallen to the lowest level since the start of the COVID-19 Coronavirus pandemic.
For this week, crude prices could continue to climb. Eighty-four percent of Gulf of Mexico oil production (1.526 million b/d) remains shuttered in the wake of Hurricane Ida, according to the Bureau of Safety and Environmental Enforcement. The downed production could put pressure on crude supplies and prices as the recovery and restoration process unfolds in the region.
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.
AAA provides more than 62 million members with automotive, travel, insurance, and financial services through its federation of 30 motor clubs and more than 1,000 branch offices across North America. Since 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for safe mobility. Drivers can request roadside assistance, identify nearby gas prices, locate discounts, book a hotel or map a route via the AAA Mobile app.