U.S. gas price decline streak ends

WASHINGTON, Jan. 27 (UPI) -- While U.S. retail gasoline prices continue their steady decline, the rate at which they're falling is slowing, signaling a reversal may be on the way, AAA said.

The motor club lists a national average price for a gallon of regular unleaded gasoline for Tuesday at $2.04, about three cents less than last week. Tuesday's price is five tenths of a penny higher than Monday's, signaling a formal end to a price decline streak that lasted 123 consecutive days.

AAA said in a weekly retail price report gasoline prices for the first 16 days of the year dropped at an average rate of one cent per day. Prices since then, however, varied by just half a cent.

"This slowing decline has been largely reflective of a number of Midwestern states where prices have moved higher over the past week due to a series of refinery issues in the region," the weekly report stated.

Retail gasoline prices are typically lower during winter months because the fuel blend is cheaper for refiners to produce. A maintenance period typically precedes the April switch to summer-grade gasoline, which must be refined in such a way as to ensure fuel doesn't vaporize in vehicle fuel systems.

Goundhog Day, Feb. 2, is usually the point at which gasoline prices begin a seasonal swing upward.

More than half of all states are reporting an average price below the $2 mark. While parts of the eastern U.S. coast were buried Tuesday by a major snowstorm, AAA said gasoline prices should fall regionally as demand suffers because most would-be drivers are staying home.

With crude oil prices trading in a bear market, AAA said it expects retail gasoline prices to stay relatively lower. The average retail price on this day in 2014 was $3.28 per gallon.

"While gas prices are likely to increase this spring due to seasonal demand and maintenance, barring any major increase in the global price of crude, AAA expects the national average to remain below $3 per gallon during 2015," it said.