Those traveling for Thanksgiving will be relieved as gas prices have been falling leading up to Holiday. The gas prices are looking more in line with the prices from 2017.
As of Monday, Nov. 19, the average national gas price went down to $2.62. That is seven cents lower than the price from a week ago, and according to AAA it is the largest one week price drop this year. The drop in prices has also brought a 7 cent year over year difference which is the lowest change in price since July 2017.
“The nearly 49 million Americans hitting the road for Thanksgiving will find pump prices similar to last year,” said AAA spokesperson, Jeanette Casselano. “When it comes time to fill-up during the trip, motorists should keep in mind that gas stations along highly traveled routes may find prices more expensive than in-town. Before setting out for the long Thanksgiving weekend, AAA recommends motorists download the free AAA Mobile app to find the lowest gas prices in their area.”
The largest monthly drops by state can be seen in the Midwest region of the country. States such as Iowa, Nebraska and Oklahoma have seen the largest price drops. Iowa dropped 41 cents, Nebraska dropped 37 cents and Oklahoma dropped 36 cents. Missouri, Delaware and Oklahoma have the lowest prices with $2.27 in Missouri and $2.28 in Delaware and Oklahoma.
The highest prices in the country still remain on the West Coast as Hawaii sits at $3.83 per gallon, which is the most expensive, and California prices sit at $3.64 per gallon.
AAA has reported that the there are concerns of an excess of global crude supply, similar to that of 2016 and 2017. The concerns are due to the growth of crude production and the low demand of crude in the 2018 fourth quarter. The Organization of Petroleum Exporting Countries (OPEC) is readying themselves to sit down and discuss reducing the quantity of crude production. OPEC, which is led by Saudia Arabia, is proposing a drop by 1 million to 1.4 million. The meeting takes place December 6 in Vienna, Austria.
AAA has also noted that non-OPEC member, Russia, will take part in any agreement to help reduce crude production. If an agreement is put together during the December meeting, it is likely that crude prices will increase because of the reduced supply.