Gas Prices Drop in Every State But Hawai‘i
At $2.76, the national gas price average is at its cheapest in six months (end of April), AAA reported on Nov. 5, 2018. During the week, motorists in every state but Hawai‘i are paying as much as a nickel less to fill up.
Today’s national average is six cents less than a week ago,15-cents less than a month ago but 24-cents more than a year ago.
Motorists in the West Coast region are paying some of the highest pump prices in the nation, with six of the region’s states landing on the nation’s top 10 most expensive list.
Hawai“i ($3.91) is the nation’s most expensive market, followed by California ($3.75), Washington ($3.51), Alaska ($3.35), Oregon ($3.34), Nevada ($3.28) and Arizona ($2.90).
On the week, all the prices in the region except for Hawai‘i, at +1 cent, are lower. California saw the largest drop at -5 cents) .
As demand continues to drop, gas prices could get even cheaper.
This price drop is happening at a time that analysts previously thought would likely see pump price increases due to the White House’s re-imposition of sanctions on Iran, some of which will target the country’s energy sector and impedes its ability to export oil.
However, in May, when the decision was announced (to take effect in November), the market reacted quickly with crude oil prices (WTI) spiking as high as $77/bbl this summer. At the same time, Iran’s exports began to dip. In early November, they are reported to be about one million b/d less than in May while crude oil prices have stayed below $70/bbl for two weeks.
“With the market anticipating and reacting to the pending Iran sanctions throughout the summer, motorists likely have seen the worst in terms of retail prices for the year,” said Jeanette Casselano, AAA spokesperson. “If the crude oil market remains steady, gas prices are likely to continue to fall as much as ten cents in the near-term.”
That being said, should any factors cause an upward shift in crude oil prices, the cheaper gas prices would likely be a temporary trend.