Gas prices started to fall last week, albeit slowly, as the abundant supply of oil continued and more U.S. refineries returned to normal production levels. The AAA Daily Fuel Gauge Report said Thursday that the national average for a gallon of regular unleaded gas fell 2 cents the past week to $2.78. A week ago the average for regular reached a calendar year high of $2.80. Related: Research Fuel-Efficient Cars Prices had jumped in Midwestern states recently because half a dozen refineries required emergency repairs or unscheduled maintenance, reducing their output and crimping supply. With at least some of those refineries back on track, pump prices began to ease in the central states. The average price for regular unleaded fell 4 cents in Michigan the past week to $2.88 a gallon; 6 cents in Illinois to $2.96; and 13 cents in Indiana to $2.72. In California, regular gas dropped 5 cents a gallon to a statewide average of $3.46. Though that is still the highest in the nation, prices have fallen six weeks in a row for a total of 33 cents. California drivers were hammered by high prices in April and May because gasoline production was sharply curtailed for weeks at two West Coast refineries. Those facilities are now back to or near full production. If the trend for lower prices continues in California, Alaska could soon take over as the state with the highest pump prices. The average price for regular gas rose 3 cents the past week to $3.45. Hawaii had the next-highest state average at $3.37. Four other states were over $3, but only one was below $2.50 — South Carolina. The average price for regular gas in South Carolina fell 2 cents the past week to $2.47. Mississippi had the second-lowest average at $2.51, followed by Alabama, $2.52, and Arkansas, $2.53. Diesel fuel prices continued to decline, dipping by a penny to a national average of $2.85 a gallon. Diesel prices have dropped by about a penny a week recently, even as gas prices climbed. A gallon of diesel is now $1.05 less than it was a year ago, while regular gas is 90 cents cheaper. Oil industry analysts point to an abundant global oil supply as an indication that pump prices could fall more during the height of the summer driving season. AAA said the OPEC oil-producing countries reported their highest output since October 2012, and U.S. oil production remains at high levels. U.S. oil prices have stabilized at around $60 a barrel. "This means the global market is likely to remain oversupplied in the near term and any reductions in demand are expected to put downward pressure on price and exacerbate the current dynamic of oversupply," AAA said in a statement. Demand for gas in the U.S, though, is increasing as lower gas prices encourage more motorists to take road trips. The Federal Highway Administration said Wednesday that Americans drove 267.9 billion miles in April, 3.9 percent more than a year earlier and the most for any month since the government started monitoring that statistic in 1990. The FHA said it was the 14th month in a row of year-on-year growth.
from Cars.com News http://ift.tt/1LzCaEL
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