Crude supply outweighing demand
Gas prices decreased everywhere this week, if only barely in Bradford and Warren.
The biggest drop was seen regionally, as average prices shed 5.3 cents to stand at $3.339 per gallon Monday, according to AAA East Central.
Bradford’s average decreased six-tenths of 1 cent to $3.598, while Warren managed one-tenth of 1 cent and rested at $3.696 this week.
Brookville, meantime, decreased 2.7 cents to $3.201, DuBois shed eight-tenths of 1 cent to register at $3.227 and Erie was down 11.6 cents to 3.109. Since May 5, Erie’s average price per gallon of gas has dropped 32.5 cents, Brookville’s 29.9 cents and DuBois 24.2 cents. Bradford’s average is the same as May 5 and Warren’s increased one half of one cent.
Across the commonwealth, gasoline prices fell 3.4 during the last week to $3.20 on Monday — 8 cents less than last month and 46.3 cents less than last year. Pennsylvania’s least expensive station was priced at $2.69 Monday — 12 cents lower than last week’s cheapest — and the highest was $1.70 per gallon more, still at $4.39.
Nationally, motorists could expect to pay 1.8 cents less per gallon this week at $3.07 — the lowest June gasoline prices since 2021. This week’s average is also 5.2 cents less than last month and 32.8 cents less than last year.
For diesel, drivers were paying $3.448 per gallon Monday, a decrease of 1.7 cents from last week.
AAA representatives said in a press release, “The summer driving season is underway, and while gas prices normally peak this time of year, drivers are getting a reprieve … due to this year’s consistently low crude oil prices.” They said current oil supply in the market is outweighing demand.
“Average gas prices declined in nearly all states over the last week as refineries ramped up output and gasoline supplies surged,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While a few states experienced price cycling — a pattern where prices drop sharply and then spike every couple of weeks — the overall gentle downward trend is typical as summer progresses. If oil prices continue to rise gradually, it could eventually impact gas prices, but for now, we likely won’t see any major shifts at the pump in most areas this week.”
According to new data from the Energy Information Administration (EIA), gasoline demand decreased from 9.45 million barrels per day last week to 8.26. Total domestic gasoline supply increased from 223.1 million barrels to 228.3. Gasoline production decreased last week, averaging 9 million barrels per day.
At the close of Wednesday’s formal trading session, West Texas Intermediate fell 56 cents to settle at $62.85 a barrel. The EIA reports that crude oil inventories decreased by 4.3 million barrels from the previous week. At 436.1 million barrels, U.S. crude oil inventories are about 7% below the five-year average for this time of year.
Motorists can find current gas prices nationwide, statewide and countywide at gasprices.aaa.com.