October 27, 2023 - WASHINGTON, D.C. - By Andrew Gross & Devin Gladden - The national average for a gallon of gas dipped by only three cents since last week to $3.53. Despite slackening demand, the pace of falling gas prices is being held up by the cost of oil, which is hovering in the mid-$80s per barrel.  

“The oil market is very sensitive to global events, and fears of a widening war in the Middle East is keeping oil prices elevated for now,” said Andrew Gross, AAA spokesperson. “Domestically, drivers will likely see pump prices keep up this slow slide toward the holidays.”

According to new data from the Energy Information Administration (EIA), gas demand decreased from 8.94 to 8.86 million b/d last week. On the other hand, total domestic gasoline stocks increased slightly to 223.5 million bbl. Lower gas demand, alongside declining oil prices, has contributed to pushing pump prices down. If oil prices continue to descend, drivers can expect further price drops at the pump in the weeks ahead.   

Today’s national average of $3.53 is 30 cents less than a month ago and 23 cents less than a year ago.

Quick Stats

• Since last Thursday, these 10 states have seen the largest decreases in their averages: California (−17 cents), Arizona (−15 cents), Alaska (−11 cents), Washington (−10 cents), Nevada (−9 cents), Utah (−8 cents), Oregon (−8 cents), Michigan (−7 cents), Wyoming (−6 cents) and Ohio (−6 cents).

• The nation’s top 10 least expensive markets: Georgia ($2.99), Mississippi ($3.00), Texas ($3.02), Louisiana ($3.07), Alabama ($3.07), South Carolina ($3.10), Arkansas ($3.11), Tennessee ($3.14), Kentucky ($3.19) and Delaware ($3.20).

Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI increased by $1.65 to settle at $85.29. The oil price rose yesterday due to concerns that the Israel-Hamas war could escalate soon as Israel appears to be preparing for ground operations. Additionally, the EIA reported that total domestic commercial crude supply increased by 1.4 million bbl to 421.1 million bbl. 

Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Source:AAA