Declining crude oil prices in recent weeks continue to drive gas prices down, an encouraging factor for motorists looking to take to the road for the upcoming Labor Day weekend. The national average price for regular grade gasoline dropped four cents this week to $2.68 a gallon Friday – a price not seen since February 24 of this year – six cents higher than the same date last year, but still $1.43 less than the record of $4.11 set in July 2008. This summer’s gas prices have remained relatively stable, settling between $2.68 and $2.78 a gallon this season. Gas prices have been on the downside ever since Memorial Day weekend, which looking back was the peak of the summer driving season.
Crude oil remained stable for the third consecutive week, driven by lingering doubts over the U.S. economic recovery and, in turn, the outlook for oil demand. Although crude rallied slightly mid-week after news of a positive U.S. jobs report, where claims fell for the first time in a month, poor housing numbers and a revised gross domestic product continue to signal lackluster U.S. economic recovery. And weakness in the consumer sector has slowed U.S. energy demand growth. Crude oil prices have declined about $10 from a peak near $83 on August 14, to $75.32 at Friday’s close.
In its weekly report, the Energy Information Administration’s (EIA) data showed crude oil stocks rose 4.1 million barrels to 358.3 million barrels. Gasoline stocks rose 2.27 million to 225.6 million barrels. The EIA also reported gasoline demand drifted 84,000 barrels per day (bpd) lower to 9.375 million bpd.
The Weekend
“As motorists gear up for the final three-day weekend of summer, they have undoubtedly noticed the recent decline in gas prices,” said Tracy E. Noble, AAA Mid-Atlantic spokesperson. “Prices at the pump have followed crude oil declines in recent weeks, dropping to their lowest point of the summer this weekend. AAA expects the national average gas price to be between $2.65 and $2.75 per gallon during the upcoming Labor Day holiday weekend.”
The Week Ahead
AAA is projecting the number of Americans traveling for the upcoming Labor Day holiday weekend will increase 9.9 percent from 2009, with approximately 34.4 million travelers taking a trip at least 50 miles away from home. Last year, 31.3 million Americans traveled during the Labor Day holiday. The increase in travel for Labor Day appears to be the result of economic improvement over the past year. AAA expects the national average price of self-serve regular gasoline to be between $2.65 and $2.75 per gallon during this holiday weekend.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline
08/20/10 | Week Ago | Year Ago | |
National | $2.68 | $2.72 | $2.62 |
New Jersey | $2.53 | $2.57 | $2.54 |
Trenton | $2.55 | $2.61 | $2.59 |
Cape May County | $2.56 | $2.60 | $2.53 |
Burlington County | $2.47 | $2.53 | $2.50 |
Middlesex, Somerset, Hunterdon | $2.54 | $2.59 | $2.55 |
Monmouth, Ocean Counties | $2.52 | $2.57 | $2.54 |
Crude Oil | $ 75.32 per barrel (close on Friday) | $73.46 per barrel (08/20/10) | $73 per barrel |
