The Week

Drivers in Maryland and across the country are seeing double digit decreases in the price of gasoline compared to the high prices seen following Hurricane Harvey, which shut down much of the Gulf Coast’s refinery operations.

Today’s national average is $2.48, which is three cents lower than this time last week, 18 cents lower than this time last month and 23 cents higher than this time last year.

Maryland’s average cost at the pump is pricing eight cents per gallon less than the national average at $2.40 per gallon. The state’s average reflects a decrease of five cents from a week ago, a 30 cents drop compared to last month, but a 14 cents increase over last year’s price.

At the close of NYMEX trading Thursday, West Texas Intermediate (WTI) crude oil settled at $50.60 per barrel, 19 cents lower than the previous week’s closing price. Decreasing fall demand combined with ample supply and slowed U.S. production has kept downward pressure on crude oil prices.

While market watchers are keeping an eye on U.S. crude oil exports, attention is now focused on whether the Organization of Petroleum Exporting Countries (OPEC) will extend their reduced production agreement beyond their March 2018 deadline in order to drive crude oil prices higher. Since late last year, efforts by OPEC to rebalance the market have had positive impacts on prices helping to buoy crude oil above the 2016 low of $26.21. 

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

The Weekend

“Gas prices have fallen steadily for the past four weeks, inching ever-closer to pre-Harvey levels.  We’re also now seeing gasoline demand drop alongside prices,” said Ragina Cooper Averella, Manager of Public and Government Affairs for AAA Mid-Atlantic.  “The latest demand figures show the lowest since the week Hurricane Harvey hit and can likely be the beginning of a downward trend indicating even cheaper gas prices to come this fall.”

The Week Ahead

As U.S. refinery capacity and gasoline production gradually came back online following Hurricane Harvey, gas prices should continue to drop following a downward demand trend, typical for this time of year. However, hurricane season is a potential factor that could disrupt the downward slide in prices, as storms have the potential to disrupt refining operations and distribution.  Hurricane season continues through November 30.

The Energy Information Administration (EIA) forecasts the U.S. regular gasoline retail price will average $2.49 per gallon in October and fall to an average of $2.33 per gallon in December.

AAA is the most comprehensive resource for gas prices.  AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S. No other fuel price research tool has such a large, automatically generated database that is especially useful in generating local average prices which are more meaningful for consumers.

AAA has a variety of resources to help motorists save on fuel:

• Fuel Price Finder (AAA.com/fuelfinder) locates the lowest fuel price in your area. 
• AAA Gas Cost Calculator (GasPrices.AAA.com/AAA-gas-cost-calculator/) helps budget travel expenses. 
• TripTik Mobile (AAA.com/mobile) plots fuel prices along your travel route. 

• AAA's Member Rewards Visa® Credit Card (AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.

   

  Next Weekend Gas Watch: Friday, October 20, 2017 

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AAA provides automotive, travel and insurance services to 58 million members nationwide and more than 937,000 members in Maryland.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android.  For more information, visit AAA.com.