Gas prices jumped but now falling again, according to AAA

Gas prices jumped, says AAA. But don’t turn blue, it was a single-day jump, and now motor fuel is continuing to drop. In the last week, gas prices have dropped four cents, now at $3.20 per gallon. What’s behind the drop, and what does the future hold?

Oil market says, “Meh”

“The main reason is a weaker cost for oil,” says a AAA news release, “which is struggling to stay above $70 per barrel. The falling price comes just a week after OPEC+ announced voluntary production cuts of about 2 million barrels daily. But instead of viewing it as coal in the stocking, the oil market response has thus far been a resounding ‘meh’.”

It’s all in line with history. Oil prices usually drop nearly a third from fall into early winter. At this point, better than half of the country’s gas retailers are selling below $3 a gallon. And, says AAA, the trend could affect the national average, as well.

If oil stays low, gas prices should stay low

AAA’s report continues, “According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.21 to 8.47 million b/d last week. Meanwhile, total domestic gasoline stocks increased significantly by 5.4 million bbl to 223.6 million bbl. Despite low gas demand, supply growth has helped push pump prices lower. If oil prices remain low, drivers can expect pump prices to do the same during the holiday season.”

Today’s national average of $3.20 is 20 cents less than a month ago and 15 cents less than a year ago.

10 states with biggest drop over the week

Planning a trip? Here’s the breakdown on how gas prices have dropped, by the 10 states with the biggest drop.

• Colorado (−12 cents)
• Utah (−11 cents)
• Idaho (−11 cents)
• California (−10 cents)
• Florida (−10 cents)
• Indiana (−10 cents)
• New Mexico (−9 cents)
• Arizona (−8 cents)
• Kentucky (−8 cents)
• Nevada (−8 cents)

Want cheaper gas? The top 10 least expensive markets are here: Texas ($2.68), Mississippi ($2.72), Oklahoma ($2.74), Missouri ($2.75), Louisiana ($2.75), Arkansas ($2.78), Kansas ($2.83), Alabama ($2.84), Tennessee ($2.85) and Iowa ($2.87).

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