CLARION CO., Pa. (EYT) — Gas prices are on the decline both locally and nationally, and experts say it doesn’t look like that will change anytime soon.
(Photo by Dave Cyphert of ProPoint Media Photography)
The national average price of gasoline has fallen for the third straight week, with a drop of 2.6 cents over the last week to $2.70 per gallon, according to national price tracker GasBuddy. The data was compiled from more than 10 million individual price reports covering 135,000 gas stations across the country. The average price of diesel also fell 0.2 cents to $2.97 per gallon.
Patrick DeHaan, head of petroleum analysis at GasBuddy, says the decline in prices is due to the escalation in the trade war between the U.S. and China.
“Gas prices have remained somewhat stable in the last week, falling in most communities across the country as oil prices remain under fire over renewed concerns of an economic slowdown in the U.S. as President Trump slapped China with new sanctions, driving the worry,” said DeHaan in a recent release.
“There’s a growing threat that gas prices may plunge this fall- perhaps as much as 50 cents per gallon by Thanksgiving- as headwinds have killed off any demand growth and gasoline demand plummets after summer. It appears less and less likely that the trade spat between the world’s two largest economies will cease any time soon, and that threat will likely stifle gas prices for the immediate future.”
Pennsylvania’s average price continues to rank among some of the highest. At an average of $2.86 per gallon, Pennsylvania’s gas prices were topped only by seven other states, including New York at an average of $2.895, Connecticut at $2.865, Utah at $2.952, Washington at $3.208, Oregon at $3.136, California at $3.702, and Nevada at $3.290.
Locally, our region also has some of the highest prices in the state, with Clarion County currently averaging $2.987 per gallon. Some surrounding counties are seeing similar prices, with averages of $2.949 in Venango County, $2.981 in Armstrong County, and $2.945 in Butler County. Jefferson County and Forest County are the places to go locally for gas, with average prices of $2.886 and $2.863, respectively.
Looking further out into the surrounding area, the prices range a bit more widely, but still, mostly remain just under $3:
- Warren $2.999
- Crawford $2.879
- Mercer $2.863
- Indiana $2.946
- Clearfield $2.851
- Elk $2.863
According to GasBuddy, oil prices fell 8% last week after President Trump surprised by announcing additional tariffs on China to take effect September 1, thrusting the trade war back into the spotlight. China appears to have responded indirectly by devaluing its currency, the Yuan overnight Sunday, further escalating the trade war and bringing the global economy to its knees as its two biggest members continue to trade barbs. Iran, meanwhile, announced it seized a third ship carrying oil or fuel, but at just 4,400 barrels it represents just seconds of daily U.S. demand.
Last week’s report on oil and petroleum inventories from the Energy Information Administration didn’t help markets, though the EIA reported a large 10.8 million barrel decline in oil inventories. Gasoline inventories fell 600,000 barrels and distillate fuel inventories rose about the same amount. Refinery utilization slipped 1.3% to 93.1% from the previous week, while oil exports rose to 3.3 million barrels per day.
At the nation’s gas pumps, nearly all states saw average gas prices slip again with the most common gas price in the country at $2.39, 10 cents lower than last week’s most common price, followed by $2.49 and $2.79. The average cost at the priciest 10% of stations was $3.56, unchanged from a week ago, while the lowest 10% averaged $2.26, a 3-cent drop. The median U.S. price was $2.61, nearly 9-cents under the national average.
With the ongoing trade war between the U.S. and China continuing to escalate, oil prices remain under selling pressure with retail gasoline prices likely to continue to drift lower in most states.
