Average Gas Prices Remain Steady Despite Low Demand

National gas prices have increased fractions of a penny to reach today’s average price for regular unleaded gasoline, which is $2.28 per gallon. Today’s average is the same as one week ago, five cents less compared to one month ago and 56 cents more than the same date last year. Prices continue to remain flat due to lower driving demand and an oversupplied market as a result of increased U.S. production. As refinery maintenance season begins and driving demand increases, we could expect to see some of the gasoline supply in the U.S. soaked up.

Locally, South Jersey motorists are playing an average of $2.26 for a gallon of unleaded fuel. This is 1 cent more than last week ($2.25), but is 9 cents less than one month ago ($2.35). However, today’s price is 74 cents more per gallon than one year ago ($1.52).

Quick Stats

• The nation’s top five markets that have seen the largest monthly decreases include West Virginia $2.27 (-11 cents), New Jersey $2.33 (-9 cents), Pennsylvania $2.53 (-9 cents), Illinois $2.29 (-9 cents) and Delaware $2.22 (-9 cents).
• The nation’s top five most expensive markets are Hawaii $3.12, California $2.90, Washington $2.74, Alaska $2.71 and Oregon $2.54.

Northeast and Mid-Atlantic

Over the past week, retail averages have remained stable in the Mid-Atlantic and Northeastern region, moving by a penny or less in most areas. Pennsylvania ($2.53) and Washington, D.C. ($2.50) are the only places in the regions with an average price at or above $2.50 per gallon and prices overall remain moderate. New Jersey (-9 cents), Pennsylvania (-9 cents), Delaware (-9 cents), Virginia (-9 cents), Maine (-8 cents) and Washington, D.C. (-7 cents) all landed on the top 15 list of largest monthly declines.

According to the latest EIA report, East Coast gasoline stocks increased by 2.5 million bbl to 76.3 million bbl - a record high for the region. OPIS reports that the increases occurred despite lower imports and lower gasoline production over the past week.

Oil Market Dynamics

Markets opened Tuesday morning reporting gains after OPEC reiterated its commitment to cut production. OPEC’s most recent Monthly Oil Market Report stated that participating countries successfully implemented 90 percent of the agreed production cuts. Last November, OPEC and non-OPEC countries agreed to cut production by 1.8 million barrels per day for six months starting in 2017 and have since hinted at the possibility of extending those cuts further. The impact the OPEC agreement has on the market will depend on the rate at which the participating countries comply with production cuts. At this time U.S. oil production is up and so are crude oil inventories so retail prices have remained fairly steady. This could all change if OPEC maintains its high level of compliance and refinery maintenance season eats into U.S. supply as driving demand increases.  Traders will continue to keep a close eye on OPEC compliance and U.S. supply and production. At the close of Friday’s formal trading session on the NYMEX, WTI was up 4 cents to settle at $53.40 per barrel.

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.