For 25 consecutive days now, the national average price of gas has remained below $2 per gallon, and prices could continue to dip lower still thanks to reduced seasonal demand and falling crude oil costs.
AAA reported that the average price of gas on Jan. 25 was $1.83 per gallon, the lowest since January 2009. The Northeast and Mid-Atlantic regions were hit hard by a blizzard this past weekend with many states seeing more than two feet of snow.
Severe weather impact gas prices as it can make it challenging for refiners to make gasoline and also make it difficult to deliver the product to market. But at the same time, winter weather can also keep drivers off the roads, and so demand can fall, AAA reported.
PBF Energy shut down its Delaware City refinery, citing power failure due to the blizzard conditions, and AAA noted averages in the region could move higher in the coming days if problems persist.
Only 11 states have averages above $2 per gallon. California continues to lead the market at $2.67 per gallon. Oklahoma ($1.53) and Missouri ($1.54) boast the lowest averages at the pump.
There is anticipation that additional oil will soon enter the market with the lifting of sanctions on Iran. Discussion abounds on if, or when, adjustments in supply will occur in order to help bring the crude oil market more into balance, according to AAA.