The Week

The national average for a gallon of regular unleaded gasoline has reached $2 for the first time since the end of March. Gas prices across the country have seen dramatic decreases as a result of a sharp drop in both the demand for gasoline and the price of crude oil. As many states have started to reopen and Americans head back out on the road, gas prices have started to increase.

“Traffic around the United States continues to climb back toward levels seen before the start of the coronavirus disease 2019 (COVID-19) pandemic, but still lags behind what would normally be seen at the start of the busy summer driving season,” according an analysis of the latest data from INRIX by OPIS.

“Personal travel during the week ending May 29 was only 16% off where it had been in February, prior to states taking efforts to contain the pandemic. That compares to the 19% off pre-pandemic levels that was seen a week earlier,” explains OPIS (Oil Price Information Service), which provides daily fuel price data to AAA.

Today’s national gas price average is $2, up three cents in the last week, up 22 cents in the last month and down 79 cents from this time last year. “While the travel data shows the impact of the recent easing of stay-at-home orders, INRIX warns the weekly data doesn’t paint a clear picture of the virus' ongoing impact on travel since the comparison is not seasonally adjusted.”

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $39.55 per barrel, $4.06 higher than last Friday’s close. The price of crude has increased each day this week but concerns still linger over whether the Organization of Petroleum Exporting Countries (OPEC+) will be able to agree on an extension of production cuts. The group is expected to meet soon to discuss the cuts. The Energy Information Administration (EIA) reported this week that crude oil inventory decreased last week but analysts feel that the amount of crude still remaining in storage will keep up with the increasing demand.

The Weekend

“Personal travel last week also increased in 88 of the 98 metropolitan areas INRIX tracks, including the Washington metro area. Americans are slowly but steadily returning to the road, causing gas prices to increase across the country,” said John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “As our region continues to reopen and pump prices increase, drivers are still filling up at about 75 cents per gallon less than this time last year.”

The Week Ahead

While AAA does not expect gas prices to reach the same levels as one year ago, unforeseen events, like a hurricane, can cause an increase. Tropical Depression Cristobal is expected to enter the Gulf of Mexico Friday night and head toward the northern Gulf Coast, making landfall as a tropical storm by Sunday. Should it strengthen to hurricane status before making landfall, it could pose a threat to the Gulf Coast region’s oil refineries.

AAA has a variety of resources to help motorists save on fuel:

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.

• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 

• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 

• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.  

Next Weekend Gas Watch: Friday, June 12, 2020

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AAA provides automotive, travel and insurance services to 60 million members nationwide and nearly 82,000 members in the District of Columbia.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android. For more information, visit  https://aaa.com