AAA: Gas Prices Down Across the Country, California at $3.44 Per Gallon

According to AAA, with Crude Oil hitting a 4-year low amid OPEC disagreement and coronavirus, national gas prices are cheaper on the week on average by 5 cents and sit at $2.38. In California, however, gas sits at $3.44 per gallon.

“For the third week, U.S. gasoline stocks decreased while demand increased. Generally, growing demand amid declining stocks causes increases at the pump, but crude oil prices have dipped to four-year lows, signaling spring could be cheaper at the pump,” said Jeanette Casselano, AAA spokesperson.

When the global markets opened on Sunday evening, West Texas Intermediate (WTI) crude oil prices dipped below $30/bbl for the first time since 2016. The market plunge is in response to a lack of agreement between Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries to cut production. The trend of pump prices facing downward pressure is likely to continue through the end of the winter driving season if crude remains cheap, especially amid concerns about the coronavirus.

According to Gas Buddy, prices in Contra Costa County was hanging around $3.10-3.15 per gallon.  ARCO Gas in Antioch (W 10^th), Brentwood (Lone Tree Way), Concord (Willow Pass Road)  and Pittsburg (W Leland Rd) is listed at $3.09.  Meanwhile, in San Ramon, gas at Valero (Market Pl) is listed at $3.59. In Walnut Creek and Richmond gas is at $3.13 at local ARCO’s.

Around the Bay Area, gas in San Francisco was $3.19 per gallon while Oakland was at $2.95 with San Jose as low as $2.85 (Excel Gas & Mart on N 1^st Street).

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West Coast

The majority of pump prices across the West Coast region continue to drop, consistent with end of winter driving season trends and cheaper crude prices. When compared to a week ago, California (-3 cents) and Arizona (-3 cents) saw the largest declines, while Alaska (+1 cent) saw the only increase. Hawaii ($3.54) and California ($3.44) remain the most expensive markets in the country. Washington ($3.08), Oregon ($2.97), Alaska ($2.93), Nevada ($2.87) and Arizona ($2.72) follow.

According to Energy Information Administration’s (EIA) latest weekly report, total gas stocks in the region increased slightly from 31.23 million bbl to 31.41 million bbl, which is 1.36 million bbl lower than the level at this time in 2019. Pump prices are likely to continue decreasing this week, barring any supply challenges.

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by $4.62 to settle at $41.28. Crude prices plunged at the end of last week after OPEC and other major crude producers, including Russia, failed to set a new production reduction agreement amid mounting global crude demand concerns caused by COVID-19. The rapid decline in crude prices has increased market concerns that an oil price war may breakout this week between major crude producers, contributing to further economic troubles worldwide as crude prices continue to drop dramatically. Moreover, the market continues to worry that the impact of COVID-19 will lead to a reduction in global economic growth and global travel, with crude demand expected to decrease. Until it appears that the international public health threat from the virus decreases, crude prices are likely to continue facing significant downward pressure.

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.