This week, AAA reported that the national gas price average is $2.43 which is 4-cents cheaper than last month and 38% of gas stations have gas for less than $2.25 per gallon. Meanwhile, in California, the average cost of gas is $3.51 per gallon.
“At $50/bbl (West Texas Intermediate), crude oil prices are at their cheapest point in a year,” said Jeanette Casselano, AAA spokesperson. “That, plus steady gasoline stock levels and low demand have helped to push the national average lower – a dime cheaper than three weeks ago.”
West Coast
Pump prices in the West Coast region continue to drop amid winter driving season. On the week, Hawaii (-2 cents) and Nevada (-2 cents) saw the largest decreases in the region. Hawaii ($3.61) and California ($3.51) remain the most expensive markets in the country. Washington ($3.08), Oregon ($2.97), Nevada ($2.94), Alaska ($2.93) and Arizona ($2.79) follow.
According to EIA’s latest weekly report, total gas stocks in the region decreased by 336,000 bbl to 32.2 million bbl. The current supply level is approximately 400,000 bbl lower than 2019’s level at this time. Pump prices are expected to continue decreasing this week, as winter demand remains low amid relatively stable stock levels.
Oil Market Dynamics
At the close of Friday’s formal trading session on the NYMEX, WTI dropped by 63 cents to settle at $50.32. Crude prices have dropped for the third consecutive week as market concerns continue to increase due to the growing impact of the coronavirus on global travel. If international travel decreases, global crude demand would likely follow suit and result in lower crude consumption worldwide. Prices could decrease again this week if concerns about the virus continue to weigh on the crude oil market.
Declining crude prices were contained slightly toward the end of last week after reports emerged that the Organization of the Petroleum Exporting Countries (OPEC) is considering deeper production cuts to offset demand concerns due to the coronavirus. OPEC and its partners are scheduled to meet in Vienna, Austria on March 5 and 6 to review their existing 1.7 million b/d production reduction agreement, but the cartel said that it may consider having the meeting sooner as the global public health crisis grows.
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.
