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U.S. gasoline prices dropped last week from the previous week by the most this year to their lowest level since April, according to GasBuddy, which monitors U.S. gas prices.
The average U.S. gas price for regular gasoline dropped by 7.0 cents from October 29 to $2.739 a gallon on November 4. The decline from October 5 was 17.7 cents. Sunday’s average U.S. gas price was the lowest since April 17, according to Patrick DeHaan, head of petroleum analysis at GasBuddy.
“Oil markets have been weak as refinery maintenance season has slowed down crude oil inputs, leading to oil inventories that have risen noticeably. In addition, jitters over the economy and stock market have helped to push values down,” FOX 11 News quoted DeHaan as saying in a news release.
“But beware: Any politician taking credit ahead of the elections is absolutely pulling your leg. We should see prices move lower yet again—but this behavior is par for the course every autumn,” DeHaan noted.
As of November 5, the day before the midterm elections, the national gas price average at $2.76 is at its cheapest in six months, according to AAA.
As demand for gasoline continues to drop, prices could get even cheaper, AAA said on Monday.
The decline in gasoline prices is happening at a time that analysts previously thought would likely see pump price increases due to the U.S. re-imposing sanctions on Iran’s oil, according to AAA.
“With the market anticipating and reacting to the pending Iran sanctions throughout the summer, motorists likely have seen the worst in terms of retail prices for the year,” AAA spokesperson Jeanette Casselano said. “If the crude oil market remains steady, gas prices are likely to continue to fall as much as ten cents in the near-term.”
However, if crude oil prices return to rise, cheaper gasoline prices may turn out to be a temporary trend, AAA said.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.