Falling gas prices around the county and around the country are expected to continue into the holiday season.
Photo courtesy AAA
ELIZABETHTOWN— With Thanksgiving in the rear view mirror, the holiday travele season has begun and Bladen County drivers are getting an early gift — falling gas prices.
The average price of a gallon of gas on Wednesday in Bladen County was $2.99. Prices haven’t been that low since December of last year.
And, the trend has been echoed across the country, according to national price watchers.
The national average for a gallon of gas is steadily declining, according to AAA. Since last week, pump prices have fallen six cents to $3.34. Since the price peak for 2023, the national average has either fallen or remained flat for 60 straight days.
“Drivers this Thanksgiving can expect cheaper gas prices,” said Andrew Gross, AAA spokesperson. “Ten states now have sub $3 a gallon averages, and more will join soon. So savvy drivers will find savings on their way to a turkey dinner this year.” According to new data from the Energy Information Administration (EIA), gas demand decreased from 9.49 to 8.95 million b/d last week. The EIA’s estimate for demand is unusually high for early November, but when the EIA releases monthly demand data in a few weeks, it could revise it lower. Meanwhile, total domestic gasoline stocks decreased by 1.5 million bbl to 215.7 million bbl. Lower gas demand, alongside declining oil prices, has contributed to pushing pump prices down. If gas demand and the cost of oil remain low, drivers can expect further pump price drops ahead of Thanksgiving.
“As millions of Americans gear up to hit the road for Thanksgiving, the national average is seeing its longest streak of declines in over a year,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “GasBuddy now counts over 65,000 stations with a price of $2.99 per gallon or lower. while 10 states are seeing average prices below $3. In addition, we could see five more states join the sub-$3 club by Thanksgiving. The fall in gas prices, largely seasonal due to weakening gasoline demand, could extend for another week or two, leading to potentially the lowest gas prices since 2021 by Christmas.”
OIL PRICES
Oil prices fell for their fourth straight week last week but closed out the week with a strong rally that’s continuing into the new week. In early Monday trade, a barrel of West Texas Intermediate crude oil is up $1.71 per barrel to $77.60, a slight rise from last Monday’s $77.12 per barrel start. Brent crude oil was also in the black, up $1.76 per barrel to $82.37, up from $81.42 per barrel. Amidst the slump in oil prices last week, Saudi Arabia hinted it may extend its 1-million-barrel-per-day production cut into 2024 as oil prices have slid into the $70s. OPEC+ will have its annual meeting on November 26 and Saudi policy will likely have a major impact on short-term oil prices. Since reaching $95 in late September, oil prices have faltered on concerns of growing weakness in China’s economy causing long-term demand to drop there, while the U.S. sees falling gasoline consumption heading into the cooler months. With refinery maintenance season wrapping up, products may have a harder time finding a home, leading the market to selling pressure.
OIL AND REFINED PRODUCTS
Last week’s report from the Energy Information Administration showed a large two-week rise in crude oil inventories, which are now about 1% above last year’s level but 2% below the five-year average for this time of year. Domestic crude oil production remained at 13.2 million barrels, while gasoline inventories slipped 1.5 million barrels, but remained slightly above average for this time of year. Distillate inventories fell 1.4 million barrels and stand 0.7% lower than last year and 13% below the five-year average range. Implied gasoline demand, a proxy for retail consumption, fell 544,000bpd to 8.95 million, with the EIA showing a monster 9.4 million barrel number the week prior when no report was issued due to a system upgrade. That number was likely vastly overstated as GasBuddy data showed a conflicting drop in demand. However, the methodology differences between EIA’s report and GasBuddy data must be understood as the EIA dataset shows movements of gasoline towards the pump, while GasBuddy data shows retail dispensed volumes.
FUEL DEMAND
According to GasBuddy demand data driven by its Pay with GasBuddy™ fuel card, U.S. retail gasoline demand saw a rise of 1.1% for the week ending November 18 (Sun-Sat). Broken down by PADD region, demand rose 1.4% in PADD 1, rose 2.1% in PADD 2, fell 1.4% in PADD 3, rose 0.2% in PADD 4, and fell 0.9% in PADD 5. GasBuddy models U.S. gasoline demand at 8.52 million barrels per day.
GAS PRICE TRENDS
The most common U.S. gas price encountered by motorists stood at $2.99 per gallon, unchanged from last week, followed by $3.09, $3.19, $2.89, and $3.29 rounding out the top five most common prices.
The median U.S. gas price is $3.09 per gallon, down 10 cents from last week and about 18 cents lower than the national average.
The top 10% of stations in the country average $4.74 per gallon, while the bottom 10% average $2.63 per gallon.
The states with the lowest average prices: Mississippi ($2.75), Texas ($2.77), and Oklahoma ($2.79).
The states with the highest average prices: California ($4.93), Hawaii ($4.67), and Washington ($4.37).
DIESEL PRICE TRENDS
The most common U.S. diesel price stood at $3.99 per gallon, unchanged from last week, followed by $4.29, $4.19, $4.39, and $4.09 rounding out the top five most common prices.
The median U.S. diesel price is $4.18 per gallon, down 6 cents from last week and about 10 cents lower than the national average for diesel.
Diesel prices at the top 10% of stations in the country average $5.44 per gallon, while the bottom 10% average $3.57 per gallon.
The states with the lowest average diesel prices: Texas ($3.70), Mississippi ($3.82), and Louisiana ($3.83).
The states with the highest average diesel prices: California ($5.89), Hawaii ($5.71), and Washington ($5.21).