AAA: Gas prices decrease in Pennsylvania
Gas prices are five cents lower in Western Pennsylvania this week at $4.929 per gallon, according to AAA East Central's Gas Price Report.
This week’s average prices: Western Pennsylvania Average: $4.929. Average price during the week of June 27, 2022: $4.979. Average price during the week of July 6, 2021: $3.245.
Trend Analysis:
The national average for a gallon of gasoline fell to $4.80, down eight cents over the past week but still $1.67 more than a year ago. The primary reason for the decline is lower demand at the pump as fewer people fueled up over the past few weeks (with the exception of the Independence Day weekend). Therefore, the lull could end as more motorists hit the road during the summer driving season.
About 80% of stations are now selling regular for under $5 a gallon. But July is typically the heaviest month for demand as more Americans travel, so this trend of easing prices could be short-lived.
According to the latest Energy Information Administration (EIA) data, gas demand currently sits at 8.93 million barrels per day, which is lower than last year's rate of 9.11 million barrels per day at the end of June. On the other hand, total domestic gasoline stocks increased by 2.6 million barrels to 221.6 million barrels. These supply/demand dynamics, along with decreasing oil prices, have pushed pump prices lower.
At the close of Friday's formal trading session, West Texas Intermediate increased by $2.67 to settle at $108.43. The price of crude increased at the end of last week due to market optimism that demand will increase throughout the summer. However, crude prices faced strong resistance amid broad market concern about the potential for economic growth to slow or stall due to rising interest rates and inflation, which could send prices lower this week if market concerns persist. Additionally, EIA reported that total domestic crude stocks decreased by 2.7 million barrels to 415.6 million barrels last week, which is nearly 37 million barrels lower than at the end of June 2021.