AAA: Lowering Crude Oil Price Could Be Good Omen for Motorists
Crude Oil Price Drops $5/bbl to Lowest Price Since May
Crude oil prices saw a significant decline of $5/bbl on the week, down to $62.32/bbl at Friday’s close, AAA reports. Prices are declining as market concerns grow that crude demand will decline as coronavirus infections increase across the globe. The downward crude price trend could spell good news for motorists.
“Crude oil prices saw not only a dramatic drop on the week, but the price per barrel is at the cheapest in three months,” said Jeanette McGee, AAA spokesperson. “If this downward trend continues and less expensive prices are sustained, Americans can expect to see relief at the pump in the near future.”
While today’s national gas price average at $3.16 is just two cents cheaper than last Monday, by the end of this week it could be even less. All eyes are on gasoline demand, which has declined for three straight weeks. The Energy Information Administration’s (EIA) latest reading puts demand at 9.3 million b/d. That is a healthy pandemic demand reading, but still about 6% below the same week in August 2019. The softer demand readings have pushed gasoline stock levels over 228 million bbl.
“Cheaper crude, softening demand and growing stock levels equal the right combination for cheaper prices at the pump, which many Americans would likely welcome after such an expensive summer,” added McGee.
At $3.16, today’s national average is 98 cents more than a year ago and 56 cents more than two years ago.
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.