October ends with retail gas price dip

ALBANY — Metro Albany motorists got a Halloween treat at the gas pumps Monday with the lowest average retail gas prices among Georgia’s eight metropolitan statistical areas, according to AAA’s Daily Fuel Gauge Report.

The Fuel Gauge Report stated that Albany motorists were paying an average of $2.067 per gallon Monday, about a penny cheaper than No. 2 metro Macon. Atlanta was highest at $2.201.

Statewide, surveys had Georgia motorists paying $2.166 (AAA) to $2.163 (GasBuddy) Monday, which was below the reported national averages of $2.21 (AAA) to $2.206 (GasBuddy).

While averages on local, state and national levels were still well above where they were on the same date in 2015, all were down from last week and last month. Georgia motorists were paying about 4.5 cents less per gallon than they were last week and 15.2-15.9 cents less compared to last month, according to the surveys.

“The pump-price dip is tied to declining demand and reduced prices of crude oil and wholesale gasoline,” Mark Jenkins, a spokesman for AAA—The Auto Club Group, said. “Gulf Coast refiners are coming back from autumn maintenance, so some more modest wholesale price relief may occur, which would bring continued relief at the pump.”

Jenkins said the Energy Information Administration reported last week that average daily consumption had fallen to 370 million gallons, down 71 million gallons from the summer driving season.

“These numbers show that we are beginning to see the typical drop in consumption that occurs every fall,” he said.

But while the trend is down at the gas pump, prices may not drop below the levels that motorists were paying late last year. Albany drivers were close Monday to the $2.044 average they were paying Oct. 31, 2015, and nationally motorists were paying about 3 cents more than last year. But Georgia motorists were paying about 11.7 cents more.

Gregg Laskoski, senior petroleum analyst for GasBuddy, noted a 119-week streak that started in July 2014 in which the national average price was lower than the previous year ended last week.

“Late last week, OPEC members further discussed the unilateral production cut they hope to reach by the end of November, and conflicting reports raise significant challenges to any consensus,” Laskoski said. “But just that possibility continues to be a dominant factor in the direction of global crude oil prices and retail gasoline prices, too.”

Laskoski observed that U.S. crude gradually rose from the mid-$40s through October. AAA officials noted that the weekly average for U.S. crude last week was $49.62 per barrel after the price fell from $50.52 Oct. 24 to close Friday at $48.70.

“Overall, market fundamentals suggest little price movement and perhaps just a nominal decrease in pump prices to begin November, with wholesale gasoline prices trending lower in recent weeks,” Laskoski said.

AAA officials said the price decline has been helped by questions as to whether OPEC nations will reach an agreement at the end of November to limit oil output. If the organization doesn’t, the decline should continue, they said.

Meanwhile, the Atlantic hurricane season, which has driven up prices when a tropical cyclone impacts the Gulf oil and gas production area, doesn’t look to be an immediate factor. The National Hurricane Center on Monday stated that no cyclones were expected to form in the next five days.