RSS   Newsletter   Contact   Advertise with us

AAA says gas price to fall to $2.40 a gallon

Share on Twitter Share on LinkedIn
Christian Fernsby ▼ | August 22, 2019
The American Automobile Association on Thursday released its fall gas price forecast, and AAA estimates the national average for a gallon of regular unleaded will drop to $2.40 a gallon from its current $2.60-a-gallon level.
gas price
America   Increases in domestic crude oil inventories are aiding the decline in oil prices
According to AAA, the factors set to drive down the cost of gas are lower crude oil prices, a historical dropoff in demand that comes after Labor Day and oil refiners switching over to less-expensive blends gas for winter driving.

Topics: U.S. gas price

AAA said that crude oil currently ranges between $50 and $60 a barrel, which is as much as one-third less than the fall of 2018, when crude oil was going for $60 to $75 a barrel.

Increases in domestic crude oil inventories are aiding the decline in oil prices, which in turn is resulting in prices at the pump going down.

However, AAA cautioned that gas-price drops could be stymied by the upcoming hurricane season, which could result in gas production and delivery delays in areas such as the Gulf Coast of Texas and Louisiana.

AAA said the National Oceanic and Atmospheric Administration has predicted this year’s Atlantic hurricane season will including five to nine hurricanes, and between 10 and 17 named storms.

AAA noted how the impact of Hurricane Harvey, in 2017, led to gas prices climbing by as much as 30 cents a gallon in a matter of a few days.