US Gas Price Drops to 3-Month Low

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The average U.S. price for a gallon of regular gasoline dipped by 3.3 cents in the past week to $2.825, according to the latest data from GasBuddy. The price had been steady for two weeks before last week’s drop of about a penny. Pump prices reached a year-to-date high of $2.97 on the Friday ahead of the Memorial Day holiday and had been declining slowly ever since.

Month over month the price is down nearly two cents a gallon and remains 50 cents a gallon higher year over year. Last month the national average was $2.844, while the year-ago average was $2.322.

Retail gasoline prices slipped in 47 states this week, rose in two states and saw no change in one other.

Patrick DeHaan, head of petroleum analysis at GasBuddy, said:

The national average price of gasoline has fallen to its lowest level since May 7, some 105 days ago when many of us were dreaming of summer road trips and falling gas prices. After all, gas as cheap as last summer has been elusive the past few months, but it’s not too late to enjoy this summer’s lowest prices. Oil prices have held in the mid-$60s per barrel, the price of which has been determined by a delicate balancing act of global optimism and pessimism surrounding a long litany of possible economic issues. As we race towards summer’s finish line, we may see more pessimism weigh on oil markets, offering some relief to weary drivers who’ve seen the most expensive summer at the pump since 2014. Labor Day will likely claim the cheapest prices for a summer holiday this year, and I’m sure millions of motorists will take advantage.

According to GasBuddy, states where prices moved most last week were: Michigan (down 11 cents); Illinois (down eight cents); Delaware, Florida and Minnesota (down four cents); and Georgia, Louisiana and Arizona (down three cents).

States with the lowest average prices last week included: South Carolina ($2.51); Alabama, Mississippi and Oklahoma ($2.54); Arkansas ($2.55); Louisiana and Texas ($2.58); Tennessee and Virginia ($2.60); and Missouri ($2.61).

The highest average prices per gallon last week were reported from Hawaii ($3.70); California ($3.58); Washington ($3.35); Alaska ($3.32); Oregon ($3.24); Idaho ($3.22); Nevada ($3.17); Utah ($3.16); Pennsylvania ($3.04); and Connecticut ($3.02).

West Texas Intermediate crude oil for September delivery traded up about 0.7% just after the noon hour Monday at $66.38, while Brent for October delivery traded at $72.34. The price differential (spread) between WTI and Brent crude increased by $0.51 to $5.96 a barrel week over week.