Gas prices continue to drop from their record highs.
Gas prices in Pennsylvania are 13 cents lower this week at $4.534 per gallon, according to AAA East Central’s Gas Price Report.
In the Lehigh Valley the average price for a gallon of gas was $4.438 on July 26, down from $4.665 on July 19.
On July 26, 2021 the average price for a gallon of gas was $3.253.
According to AAA, it was modest demand for gas and lower oil prices that led to pump prices falling again.
The national average is down almost 17 cents since last week to $4.327. Today’s average is 57 cents less than a month ago and $1.17 more than a year ago.
The steady decline is due to low domestic demand for gasoline and oil prices that remain in the mid-$90s per barrel. The price of gas has now fallen every day since hitting a record $5.016 on June 14.
According to new data from the Energy Information Administration (EIA), gas demand rose from 8.06 million barrels per day to 8.52 million barrels per day last week.
However, AAA said that rate is 800,000 barrels per day lower than last year and is in line with demand during July 2020, when COVID-19 restrictions curbed demand.
Additionally, total domestic gasoline stocks increased by 3.5 million barrels to 228.4 million barrels, signaling that low demand led to growth in inventory last week.
At the close of Friday’s formal trading session, West Texas Intermediate decreased by $1.65 to settle at $94.70.
Crude prices declined last week as the market continues to worry that weak demand, which is typically strong throughout the summer, could continue to push prices lower, AAA speculated.
A strengthening dollar also helped to push crude prices lower last week.r