Posted in: Gas Prices,
by Patrick DeHaan on Sep 24, 2012 10:20 AM
You've likely heard it for weeks- gasoline prices were likely to start declining. The relief that we've long been expecting and looking forward to is seemingly on its way.
While the U.S. and Canadian national averages didn't shed a substantial amount, the fact we've "turned the corner" bodes well as we expect prices to continue to decline, at least in the near term. The U.S. average shed nearly 5c/gal in the last week, dropping to $3.814 this morning, while the Canadian average fell a larger 3c/L to 131.2c/L.
Six states continue to have average gasoline prices above the psychological $4/gal mark: Hawaii, California, Connecticut, New York, Alaska, and Illinois. The highest prices in the U.S. today can be found in San Francisco, CA, where average prices sit at $4.24/gal, a three cent jump in the last week. In Canada, Quebec City's average of 139.7c/L takes the cake. On the flip side, the cheapest gasoline in Canada today stands at 117.1c/L in Edmonton. In the U.S., Greenville, SC wins the lowest price title, with the average price of $3.475/gal today.
It is likely that a majority of areas in the U.S. and Canada continue to see declines in the upcoming week. While I can't rule out a price increase only in the Great Lakes, it is likely that outside of that small pocket, prices will continue to cool.
Oil prices are starting this work week down to $91.59/bbl, while wholesale gasoline prices are also lower. All eyes will be on Wednesday's Energy Information Administration report on national stockpiles of petroleum. It is likely that another increase will take place, but the magnitude of which is unknown. A big increase in inventories will likely mean lower oil prices.