Gas Prices to Drop with Temps

GasBuddy: Many factors behind unusual jump in prices at the pump

A week ago, DeHaan said the price increase could be attributed to a major pipeline leak resulting in oil-flow disruption, autumn refinery maintenance and the demand for gasoline late in the season.

Last Monday, crude oil hit a two-year high, buoyed by lower US inventory and production, and concerns over the stability Saudi Arabia. "Strong U.S. demand and exports of gasoline is a major factor supporting gas prices, now at levels that have not been seen in Canada in over two years".

So far, however, the run-up isn't setting off alarm bells.

Americans are driving more in November, and that's combined with rising oil prices to drive gas prices higher, the American Automobile Association said Monday. Seven of the 10 states with the cheapest gas were in the South, led by Alabama at $2.26.

"Analysts warn that oil prices could be somewhat volatile this week, as the consolidation of power in Saudi Arabia leaves speculators questioning the impacts on global oil supply", he said.

"Domestic oil supply and production made solid gains", he said.

Strong demand in the US pushed gasoline inventories down another 3.3 million barrels to their lowest level in three years, according to the most recent data from the Energy Information Administration.

The national average has increased 8.6 cents per gallon during the last month and stands 39.8 cents per gallon higher than this day one year ago.

The state average's steady climb came to a crawl over Veterans Day weekend. A couple of stations in the Peachtree Corners and Norcross area sold gas for $2.25 per gallon.

"If you use gas prices to figure out the time of year it is, you'd probably think it's spring based on the continued upward trend showing up in much of the country", Patrick DeHaan, head of petroleum analysis for GasBuddy, said in a Monday press release.

This marks the third straight week that gas prices have risen in New Jersey.

Related News: