WESTWOOD, MA (FRANKLIN COUNTY NOW) — As average Northeast gasoline prices creep closer to $3, a confluence of international and domestic developments relating to the economy, the weather and escalating geopolitical conflicts could slow the pace of price declines in the short term.
Looking solely at the supply and demand equation, current data points to a continuation in the steady drop in gasoline prices here in the Northeast. Inventories remain above the five-year average and retailers are switching to less expensive winter-blend fuel. As domestic production remains strong, gasoline demand did increase last week by about 300,000 barrels to 8.7 million barrels a day, according to the Energy Information Administration, but remains well below levels that would indicate impending supply concerns.
But a patch of turbulent weather in the Atlantic is threatening the Gulf Coast, which could see a hurricane make landfall later this week. That, in turn, could lead to disruption in domestic oil and gas markets. Meanwhile, fighting escalated over the past week in the Middle East and markets have reacted by sending oil higher. And the first interest rate cut since March 2020 by the Federal Reserve last week could boost economic activity, in turn causing a spike in demand.
The average gas price in Massachusetts is down six cents over last week ($3.20), averaging $3.14 per gallon. Today’s price is 24 cents lower than a month ago ($3.38) and 63 cents lower than this day last year ($3.77). Massachusetts’s average gas price is six cents lower than the national average.
“The overall trend points to gasoline prices continuing their decline through autumn,” said Mark Schieldrop, Senior Spokesperson, AAA Northeast. “But the pace of declines could slow over the next few weeks as hurricane season continues and markets react to global economic news and the latest headlines from geopolitical hotspots.”
AAA Northeast’s Sept. 23 survey of fuel prices found the current national average unchanged from last week ($3.20), averaging $3.20 a gallon. Today’s national average price is 17 cents lower than a month ago ($3.37) and 65 cents lower than this day last year ($3.85).