Heavy traffic expected during the long holiday weekend, though prices at the pump are at 2005 lows, motor club AAA reports. File Photo by Stephen Gross/UPI |
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WASHINGTON, June 28 (UPI) -- Higher refinery output in the United States and troubling economic news overseas could put downward pressure on retail gas prices, market analysis finds.
Motor club AAA reports a national average retail price for a gallon of regular unleaded at $2.30, a slight decrease from the previous day and about 1 percent less than one month ago. Year-on-year, the price at the pump is 17 percent less, suggesting the upcoming Fourth of July holiday weekend may be the cheapest in years for U.S. travelers.
"Pump prices are holding relatively steady and remain at their lowest levels for this time of year since 2005," AAA said in its weekly retail market report.
Lower gasoline prices means U.S. families may be more willing to travel this summer and AAA said industry data show new records for demand and travel are expected this year. That would typically put positive pressure on retail prices, though the motor club said most regional refineries are keeping pace with the increased demand.
For the West Coast, one of the most expensive retail markets in the country, most states are showing elevated prices, though gasoline production is at a two-year high. At $2.90, California has the highest price for gas in the Lower 48, up 3.2 percent from one month ago, but still 16 percent less than this time last year.
Another expensive market, drivers in the Great Lakes states are starting to see some relief following a string of pipeline and refinery issues. Illinois and Michigan still rank in the Top 10 for most expensive markets, though AAA reports that as refineries catch up, they're also seeing some of the steepest declines in prices compared with last week.
Crude oil prices are a driving force in prices at the pump and the British referendum in favor of leaving the European Union caused global markets to collapse. The price for Brent crude oil, a global benchmark based on North Sea Oil, is down roughly 5 percent since Thursday, the day of the vote.
"The Brexit put a damper on these speculations because it contributed to the U.S. dollar gaining strength," AAA said. "A strong dollar makes crude oil more expensive for countries holding other currencies, which limits purchasing power, and could reduce global crude oil demand."
