Gas Prices Continue To Drop Across Country
The national average for a gallon of gasoline could drop below $2 for the first time in four years, AAA said Monday.
Due to low demand, gas prices have fallen across the country. At the moment, the national average for a gallon of gas sits at $2.01, 11 cents cheaper than last week; 43 cents cheaper than a month ago; and 68 cents cheaper than last year.
In the Jamestown area, a gallon of gas costs about $2.23, down from $2.37 a week ago and from $2.70 a year ago at the same time.
According to AAA, gasoline stocks decreased by 1.2 million barrels. The Energy Information Administration measures total inventory for the region at 60 million barrels. However, regional refinery utilization bumped up 1% to 58%. Gas prices should continue to decrease across the region in the week ahead, with more states seeing their average fall below $2/gallon.
Crude oil continues to price low as U.S. gasoline demand decreases to numbers typically seen during the winter driving season. In fact, there is an atypical amount of winter-blend gasoline supply still available, which has caused the Environmental Protection Agency to extend the sale of winter blend past the May 1 deadline to May 20. The agency said they will continue to monitor and, if necessary, extend the waiver again. Delaying the switch-over to summer-blend gasoline should prove to be another contributing factor to sustained lower gas prices.
Prices continue to decline as the public health, financial, and economic impacts from COVID-19 continue to mount. Until these impacts subside and Russia and Saudi Arabia end their crude price war, the cost of a barrel of oil is likely to remain at lows not seen in nearly two decades.