CONCORD, NH – Pump prices have now fallen for 30 straight days — the longest streak since August/September of last year — and are at their lowest mark for this date since 2004. As of July 11, the national average price for regular unleaded gasoline is $2.23 per gallon, which is four cents per gallon less than a week ago, 15 cents less than a month ago and 53 cents less than one year ago. Prices for some drivers are even lower with some 25,000 gas stations (approximately a quarter of stations) nationwide now selling gasoline for less than $2.
Gasoline prices are poised to continue their slide this week as both crude oil and wholesale gasoline prices turned lower last week. West Texas Intermediate and Brent crude were each down more than 7 percent last week, with WTI, the primary U.S. benchmark, falling from $48.99 to $45.41 (-7.9%) over the course of the holiday-shortened trading week. The price of oil currently reflects slightly more than half the price of gasoline at the pump, so lower oil prices are expected to result in lower retail gas prices for drivers. Additionally, the most recent Department of Energy report cited domestic gasoline production as just 100,000 barrels per day short of the all-time record, lending further momentum to falling prices.
While retail gas prices may continue to slide through the month of July, there are a number of factors that could cause prices to rise again. This includes an increase in the global price of crude oil due to disruption in supply, stronger than expected economic indicators or geopolitical tensions overseas; as well as domestic factors like refinery issues, production cuts due to lower prices, stronger than anticipated demand or hurricanes that impact distribution and production.
- The West Coast remains the most expensive region to by gasoline in the country, led by California ($2.88), Hawaii ($2.83), Washington ($2.67), Alaska ($2.66) and Nevada ($2.57).
- The nation’s least expensive markets are South Carolina ($1.93), Oklahoma ($2.00) Mississippi ($2.00), Missouri ($2.01) and Alabama ($2.02).
Around New England Prices
- Vermont’s current price is $2.30 per gallon, which is two cents lower than one week ago, and 45 cents lower than one year ago.
- New Hampshire’s current price is $2.20 per gallon, which is three cents lower than one week ago and 51 cents lower than one year ago.
- Maine’s current price is $2.29 per gallon, which is three cents lower than one week ago and 49 cents lower than one year ago.
- Massachusetts current price is $2.26 per gallon, which two cents lower than one week ago and 49 cents lower than one year ago.
Oil Market Dynamics
Global oil prices have continued to sag thanks largely to indications of increased supply. This includes reports that June production by the Organization of Petroleum Exporting Countries rose to more than 32.5 million barrels per day, as Nigerian production ramped up following disruptions. While these reports have pressured global prices lower, the region remains volatile and an incident that impacts production or heightens geopolitical concerns could send prices higher again. At the close of Friday’s formal trading session on the NYMEX, WTI was up 27 cents to settle at $45.41 per barrel.
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.