The average U.S. price for a gallon of regular gasoline slipped by nearly three cents last week to start the new week at $2.888, according to the latest data from GasBuddy. Pump prices reached a year-to-date high of $2.97 on the Friday ahead of the Memorial Day holiday.
Month over month, the price is down about 2.8 cents a gallon and is more than 61 cents a gallon higher year over year. Last month the national average was $2.923, while the year-ago average was $2.283.
Gas prices have fallen for three consecutive weeks now. Of the 50 states and the District of Columbia, prices fell in 47. Prices rose only in Michigan, Indiana and Vermont.
Patrick DeHaan, head of petroleum analysis at GasBuddy, said:
Average gas prices in the U.S. have fallen to their lowest in a month, following oil’s continued slump as OPEC appears poised to adjust oil production levels and the U.S. nears its hitting 11 million barrels of oil pumped per day, the highest level ever. Oil bulls may see their day again this summer, but the prospects of higher oil supply have diminished the value of oil for the time being, and that’s leading to what nearly every American has been rooting for as of late–lower gas prices. While many are still bitter over having to pay more than last year, prices certainly could have moved higher if there hadn’t been pressure on OPEC to act now that the (previous) glut of crude oil has been absorbed into the market. We see gas prices falling slightly into late June or early July before odds rise of hurricane season leading to some volatility at the pump, which could lead prices higher short term.
According to GasBuddy, states where prices moved most last week were: Ohio (down eight cents); Delaware (down six cents); Indiana (up five cents); Florida, New Mexico, Virginia, Michigan, Mississippi, Maryland and Nebraska (all down four cents).
States with the lowest average prices last week included: South Carolina ($2.54); Mississippi ($2.56); Alabama ($2.58); Louisiana ($2.61); Oklahoma ($2.62); Tennessee, Arkansas and Missouri ($2.63); Virginia ($2.66); and Kansas ($2.69).
The highest average prices per gallon last week were reported from California ($3.70); Hawaii ($3.67); Washington ($3.44); Alaska ($3.41); Nevada ($3.40); Oregon ($3.30); Utah ($3.21); Idaho ($3.18); Connecticut ($3.13); and Arizona ($3.12).
West Texas Intermediate crude oil for July delivery traded up 1.1% Monday at $65.80, while Brent for August delivery traded at $75.16. The price differential (spread) between WTI and Brent crude dipped by $1.22 to $9.36 a barrel week over week.