At $2.54, the national gas price average is the cheapest pump price seen this February. The national gas price average for the month of February is $2.56, which is 29-cents more expensive than the $2.28 average of February 2017.
“Gas prices continue to trend cheaper for the majority of New England motorists as demand for consumer gasoline declines for a second week,” said Dan Goodman, manager of public affairs for AAA Northern New England.
- Vermont’s average current price is $2.60 per gallon, which is 2 cents lower than one week ago, and 30 cents higher than one year ago.
- New Hampshire’s average current price is $2.49 per gallon, which is 1 cent lower than one week ago and 28 cents higher than one year ago.
- Maine’s current price is $2.56 per gallon, which is the same price as one week ago and 25 cents higher than one year ago.
“There is tremendous volatility in the oil and gasoline market. Crude oil is selling at high prices compared to previous years and domestic gasoline demand has been high most of the winter among the factors all driving gas prices up and draining consumers’ wallets. This spring, consumers may have to make decisions on where they can cut costs to cover gas prices that are potentially 40-cents more per gallon than last spring,” continued Goodman.
Regional inventories dropped to the 65 million bbl mark on the week. According to the EIA, inventory fell by 748,000 bbl. Inventories are 10.2 million bbl below totals compared to this week last year.
Oil market dynamics
Oil prices are likely to continue rebounding after the EIA’s latest petroleum report revealed that U.S. crude inventories unexpectedly fell by 1.6 million barrels. The drop gave some market observers hope that global demand growth this year may help drain global inventories further, even with U.S. production continuing to grow.
EIA’s report also found that U.S. domestic crude production and exports remain high, hitting 10.270 million b/d and 2.04 million b/d respectively. A steady increase in crude oil exports underscores that growth in domestic production has led to the U.S. ability to meet growth in global appetite for oil. The growth and price gains for crude since the end of last year have helped to drive additional investment in drilling activity in the U.S., which currently has 799 active oil rigs, according to Baker Hughes, Inc.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.