Pump Price Plunge Skidding to a Stop?
TAMPA, Fla. (July 5, 2017) — Americans hitting the road on Independence Day found the lowest gas prices in more than a decade, according to AAA, whose data is collected from credit card swipes and direct feeds from 120,000 gas stations nationwide, in cooperation with OPIS and Wright Express.
Although the national average of $2.23 was the lowest for the holiday in 12 years, state averages in the southeastern U.S. were the lowest in 13 years. On July 4, 2017, gas prices averaged $2.15 in Florida, $2.08 in Georgia, and $1.99 in Tennessee.
“Unfortunately the pump price plunge may soon come to an end,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “We are entering a 6-week period where demand is normally the strongest of the year. Plus, oil and wholesale prices made solid gains last week, reaching a level that should cause gas prices to level off. Motorists in some markets may see pump prices climb 5-10 cents in the next week or two as a result.”
The oil market has steadily climbed during the past week after EIA data showed domestic oil production lowered by about 100,000 barrels per day, for the week ending on June 23. Moreover, last week Baker Hughes Inc. reported that for the first time in 24 weeks, the U.S. oil rig count declined by two – bringing the total rig count to 756. Neither of these declines are considered dramatic, but the sudden shift in fundamentals was enough to send oil prices higher. Market watchers will look to today’s EIA data report to see if this trend continues, in hopes it will steer prices higher.
The price of crude rose for the 10th consecutive day Monday, settling at $47.07 per barrel. Crude prices are up $4.54 since reaching this year’s lowest daily settlement of $42.53 on June 21.
Gas Price Tools for Reporters/Consumers
- GasPrices.AAA.com – Daily national, state, and metro gas price averages.
- AAA Mobile app – Free app that shows current prices at a gas station near you.
(Based on weekly data provided by the EIA)