Gas prices inch lower in New Jersey

Just in time for the year-end holiday travel season gasoline prices saw a slight decline this week, continuing an 8-week run of stability at the pump.  The average U.S. retail price for regular gasoline was $2.59 a gallon on Friday, down 3 cents from last week, 92 cents above year-ago prices and $1.52 below the record set last July.  Barring any unforeseen events, motorists can expect gas prices to remain stable for the remainder of 2009.

After closing last week at a 2-month low just below the $70 mark, crude oil rebounded this week in response to a weaker U.S. dollar and unexpected drop in crude stocks, settling at $73.36 at the close of trading Friday.  Oil prices have risen sharply since collapsing sharply toward $32 at the peak of the financial crisis last December, but it’s still dramatically lower than the record prices above $147 a barrel set in July 2008.  Given the severity of the economic recession, a return to oil demand levels that pushes crude oil prices above their current $60 to $80 per barrel range may be months away.

The Energy Information Administration’s (EIA) weekly report showed crude stocks unexpectedly fell 3.7 million barrels to 332.4 million barrels, against a forecasted 1.8 million barrels.  Gasoline stocks were up 900,000 barrels to 217.2 million barrels, below analysts’ forecasts for a 1.3 million barrel build.

The Weekend

“This weekend marks the beginning of long-distance holiday travel for many people. Motorists in the Mid-Atlantic region are finding themselves preoccupied with the weather rather than gas prices,” David Weinstein, Manager of Public and Government Affairs for AAA Mid-Atlantic.  “The region was hit with its first significant snow storm of the season this weekend, causing numerous travel delays, as well as alterations to travel and shopping plans.  Nonetheless, the hustle and bustle of holiday travel, shopping and family gatherings will fill the coming week.  Even though gas prices are higher than last year, they are not high enough to affect holiday travel plans and the majority of holiday travelers will still go by car.”

 The Week Ahead

AAA estimates that 87.7 million Americans will travel more than 50 miles or more away from home during the year-end holidays, a 3.8% increase from the same period last year and the largest projected increase for any major holiday this year.  Gas prices are nearly $1 a gallon higher than they were a year ago, yet 88% of holiday travelers will go by car.  With the average cost of self-serve regular gasoline remaining well-below $3 per gallon in most areas of the country and prices fairly stable since mid-October, AAA believes fuel prices will have a minimal effect on holiday travel.

Also ahead this week, OPEC is expected to leave current output levels unchanged when members meet on Tuesday in the Angolan capital of Luanda.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

AAA is the most comprehensive resource for gas prices.  Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S.

To find prices at individual gas stations, go to AAA Fuel Finder:

http://www.aaamidatlantic.com/Outreach/GasInfo