Despite literal and figurative storm clouds here and abroad, falling gas prices are in the news. The national average for a gallon of gas still fell by three cents from last week to $3.19. This information from the motorist group, AAA.
The devastation wrought by Hurricane Helene did little to impact gasoline supply, but it crushed demand in affected areas by destroying infrastructure and causing power outages. Meanwhile, the average cost of public EV charging remained unchanged.
Falling gas prices could be shot down by Iran-Israel conflict
Overseas, the ongoing tensions between Iran and Israel are fueling fears that a war could disrupt oil shipments through the Straits of Hormuz, a vital chokepoint for maritime traffic.
This has led to oil prices creeping higher. We wrote about this earlier this week: Brace for impact: Gas prices could rise 15 cents as Iran-Israel conflict heats up.
“Despite the threat of war and a hurricane season that is still percolating, domestic gasoline prices are edging lower,” said Andrew Gross, AAA spokesperson. “There are now 18 states east of the Rockies with averages below $3 a gallon. And OPEC+ is saying, at least for now, they will increase production starting December 1st, putting even more downward pressure on pump prices.”
“Tepid gasoline demand—low oil costs”
According to new data from the Energy Information Administration (EIA), gas demand plummeted from 9.20 million barrels per day last week to 8.52.
Meanwhile, total domestic gasoline stocks rose from 220.1 million barrels to 221.2, while gasoline production decreased last week, averaging 9.6 million barrels daily. Tepid gasoline demand and low oil costs will likely keep pump prices sliding.
Falling gas prices showed in today’s national average for a gallon of gas: $3.19. That’s 13 cents less than a month ago and 60 cents less than a year ago.
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Thank you, Russ and Tina! 🙂 So many moving parts and of varying degrees of importance, it is no wonder that forecasters are more often wrong than right. 🤔😯😉😊 Thanks again, have a great day, and safe travels! 🙂
As usual speculation has started gasoline prices rising. Nobody knows if Iran’s oil production will be disrupted. And oil is a worldwide commodity. It does not matter if the U.S. is now a net petroleum exporter, or that refineries for most of the country have not been affected. If any oil producer might falter, market speculators will drive up the barrel trade price.
In NEPA a few stations gas is $2.99 9/10. Unusual for us.