You may have noticed- gas price declines have begun to slow in many areas across the country over the last week, and in some areas, low prices have given way to slightly higher prices, thanks to some optimism last week surrounding the debt ceiling and government shutdown.
The national average dropped a little over a penny in the last week to $3.371 per gallon, or about 40-cents lower than last year on this date. Prices were still holding under a $3 average in just two cities: Lubbock, TX and Tulsa, OK.
Meanwhile, Honolulu, Hawaii may finally drop under $4/gal on average in the coming weeks, the lone city above that level. Prices there declined to $4.06 per gallon, shedding 3-cents in the last week.
With the Fed shutdown continuing, we also will be seeing less data made available this week as it is the first week that we're not expecting the government to release a weekly report on changes in supply and demand, meaning traders will be somewhat blinded when it comes to trading futures, which could add to volatility.
By and large, gasoline prices should continue their downward trend this week across most areas besides the Great Lakes, who may see a spike, although some lower priced areas may see slight increases as some gas stations that were priced very low raised their price as oil prices gained slightly mid-week last week. I don't expect any significant rally to emerge in oil, so even if gas prices don't drop much, they shouldn't rise much, either.