Weekly Price Drop Not Enough to Move Below Last Year’s Average

11/03/16
Fuel

Today’s average price for regular unleaded gasoline is $2.21 per gallon, which is one cent cheaper than one week ago, the same price compared to one month ago and three cents more than the same date last year. National gas prices have now dropped for six consecutive days, but the usual seasonal decline has stalled as prices have remained roughly the same since early September.

Drivers may continue to see prices wobble up and down as traders speculate on the possibility of OPEC countries developing an output agreement over the next month. Additionally, planned and unplanned refinery maintenance continues across the United States and may result in regional fluctuations in gas prices.

Locally, South Jersey motorists are paying an average of $1.99 per gallon of unleaded gas. This is the same price as last week, but is 6 cents more per gallon than this time last month ($1.93). Today’s price is also 11 cents more per gallon than this time last year ($1.88). Local prices will increase dramatically on Nov. 1, when a new state tax adds 23 cents to each gallon of gas sold in New Jersey.

Quick Stats

• The nation’s top five least expensive markets are: Missouri ($1.99), Oklahoma ($1.99), Arkansas ($2.01), South Carolina ($2.01), Kansas ($2.02).

• The nation’s top five most expensive markets are: Hawaii ($2.91), California ($2.79), Washington ($2.73), Alaska ($2.63), Oregon ($2.55).

Mid-Atlantic and Northeast

Refinery issues continue to impact prices in the regions with some sates landing on the top-15 list of most expensive markets in the country: Pennsylvania ($2.40), New York ($2.38), Connecticut ($2.33), Vermont ($2.30) and Maine ($2.28). Drivers should begin to see some relief in the coming weeks as refinery maintenance wraps up. Delta's Monroe Energy is expected to restart its 53,000-b/d fluid catalytic cracking unit at its Trainer, Pennsylvania refinery this week and PBF's Paulsboro refinery in New Jersey is also expected to return to normal operations soon. OPIS reports that Irving Oil is expected to restart some units at its 320,000-b/d Canadian refinery in the coming weeks. The maintenance work which started back in September has resulted in price increases for drivers in much of the Northeast.

Oil Market Dynamics

Late last week, OPEC officials met in Vienna to hash out the details of a potential production freeze agreement, but several hours of discussions bore no resolution. Iraq and Iran have continued to voice concerns over participating in a production cut, and as a result, negotiations have stalled. Traders will continue to closely monitor OPEC negotiations for any indication of an agreement in the days leading up to the next official meeting scheduled for November 30.  At the close of Friday’s formal trading session on the NYMEX, WTI was down $1.02 to settle at $48.70 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.