Gas prices decline slightly but demand expected to increase this week
Press release from the Automobile Association of America:
Today’s national average price for a gallon of gasoline is $4.90, down 8 cents from last Monday. One year ago, the price was $3.10. The New York State average is $4.96, down 5 cents since last Monday. A year ago, the NYS average was $3.15. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia - $4.88 (down 1 cent from last Monday)
- Buffalo - $4.86 (down 3 cents from last Monday)
- Elmira - $4.93 (down 4 cents from last Monday)
- Ithaca - $4.95 (down 3 cents from last Monday)
- Rochester - $4.95 (down 2 cents from last Monday)
- Rome - $4.97 (down 1 cent from last Monday)
- Syracuse - $4.93 (down 3 cents from last Monday)
- Watertown - $4.97 (down 1 cent from last Monday)
Lower oil prices have brought some relief to the pump. Crude prices have dropped amid broad market concern regarding the potential for economic growth to slow or stall due to rising interest rates and inflation. A lower economic growth rate than expected could cause crude demand to decline, leading prices to follow suit. This morning oil prices are at about $108 to $113 per barrel.
Meanwhile, the Energy Information Administration did not release gasoline demand/supply and domestic oil inventory levels data last week due to “systems issues,” but demand is expected to pick up this week as travelers head out for the Independence Day holiday. AAA predicts 47.9 million people will travel 50 miles or more from home over the holiday weekend (June 30 – July 4). This is an increase of 3.7% over 2021, bringing travel volumes just shy of those seen in 2019. The biggest surprise – car travel – will set a new record despite historically high gas prices with 42 million people hitting the road. AAA reminds road trippers and air travelers to pack their patience and plan ahead to avoid hassles.
From Gas Buddy:
"With Independence Day a week away, gas prices have continued to fall for the second straight week as the price of oil has faltered, ushering in the drop we're seeing. The good news is we could also see a third straight week of decline," said Patrick De Haan, head of petroleum analysis at GasBuddy. "While prices will be at their highest July 4th level ever, they'll have fallen close to 20 cents since our peak in early June. Motorists should be wary that while the decline could continue for the week ahead, any sudden jolts to supply could quickly cause a turnaround, and risk remains that when the peak of hurricane season arrives, we could see a super spike at the pump."