Gas prices drop in Lehigh Valley but supply and geopolitical risks remain
Prices slipped for a second week, but declining supplies and uncertainty around Iran peace talks leave upward pressure possible as summer driving begins.
After reaching record highs gas prices have dropped drastically for the second straight week both locally and nationally.
According to the most recent AAA East Central Gas report, the average price for a gallon of gas in Pennsylvania is 12 cents lower this week at $4.481.
In the Lehigh Valley, the average price for a gallon of gas dropped to $4.276 on June 1, down from $4.496 the week prior, but still much higher than one year ago when it was $3.110.
Nationally, AAA said the average for a gallon of regular gasoline is down 18 cents from last week at $4.32.
Crude oil prices were lower last week amid reports of peace talks with Iran. But Monday, there were reports Iran may suspend those talks, leaving the potential for higher oil and gas prices again.
Gas prices remain the highest they’ve been in four years and will likely remain elevated as the busy summer driving season gets underway.
Today’s national average is seven cents less than a month ago but $1.18 more than a year ago.
According to new data from the Energy Information Administration (EIA), gasoline demand increased last week from 8.76 million barrels per day to 9.25 million.
Total domestic gasoline supply decreased from 214.2 million barrels to 211.6 million. Gasoline production increased last week, averaging 9.9 million barrels per day.
At the close of Wednesday’s formal trading session, West Texas Intermediate fell $5.21 to settle at $88.68 a barrel.
The EIA reports crude oil inventories decreased by 3.3 million barrels from the previous week. At 441.7 million barrels, U.S. crude oil inventories are about 2% below the five-year average for this time of year.