Pump prices in the Pittsburgh region stayed flat over the last week, averaging $2.54 a gallon on Monday, according to GasBuddy’s survey of more than 700 stations in southwestern Pennsylvania.
Regional gasoline prices, which are usually at their highest this time of year, have fallen 18 cents a gaIlon since peaking at $2.72 a gallon on April 24. Pump prices have fallen or stayed flat for 11 consecutive weeks.
Meanwhile, the average price nationally rose five cents a gallon to $2.28 a gallon, GasBuddy reported.
The prolonged drop have been unusual because seasonal pressures typically push up gasoline prices during spring and summer months. Refineries temporarily shut down to produce cleaner-burning gasoline for the summer months, and demand from motorists typically rises with warmer weather.
Each spring, average U.S. gasoline prices rise 35 cents to 75 cents, usually from February to May, according to GasBuddy’s historical figures. Last year, Pittsburgh-area prices increased 73 cents from February to June.
So far this spring, regional prices are about what they were in February.
Market analysts agree that slumping global oil prices, which are the biggest factor in American gasoline prices, are keeping prices historically low. Though global oil price benchmark rose to $56 a barrel earlier in April, it has cooled off in the last three months. On Monday, global oil prices dropped to about $46 a barrel.
The concern is too much supply. A deal reached in December capped oil production among members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia. OPEC members in May agreed to extend those production caps another nine months. But the deals have not been enough to raise prices.
Persistently low prices could push more producers to cut output, and rising summer demand from motorists could also factor into higher prices.
But, for the time being, prices will sit near the lowest in recent memory. Compared with previous years, the Pittsburgh region’s pumps are on average 3 cents more expensive than this time one year ago; 41 cents cheaper than in 2015; and $1.29 cheaper than in 2014.
“While gas prices may rise slightly in some states in the week ahead, it will be a very mixed bag across the country as the recent rally in crude oil prices appears to have stalled for now,” wrote Patrick DeHaan, senior petroleum analyst for GasBuddy.com, in the website’s weekly media release.
“Prices may fluctuate mildly in the weeks ahead, but we'll be bouncing near the summer low price for some time,” Mr. DeHaan added. “Don't expect much improvement in prices from for the rest of the summer.”
First Published: July 10, 2017, 3:00 p.m.
