PROVIDENCE — Gasoline prices continue to fall in the final weeks of summer, partly due to slowing demand and rising domestic production, but markets are closely watching renewed tropical storm activity in the Atlantic and rising geopolitical tensions in the Middle East.
“It appears that gas prices are falling seasonally as the summer season comes to a close,” said Jillian Young, director of public relations for AAA Northeast. “But tensions in the Middle East and renewed tropical storms could turn the tide.”
Last week, gasoline demand was 8.9 million barrels a day, down nearly 300,000 barrels a day from the previous week, according to the latest report from the Energy Information Administration. Meanwhile, inventories, which had been shrinking for two weeks, rebounded as refiners added 1.3 million barrels to national supplies.
The supply and demand picture mitigates the impact of crude oil prices, which rose sharply last week in anticipation of escalating conflict in the Middle East. Crude oil prices were also supported by the formation of a new tropical disturbance in the Atlantic, which is now likely to develop into Hurricane Ernesto and could threaten the United States later this week.
The average price of gasoline in Rhode Island is down five cents from last week, averaging $3.35 per gallon. Today’s price is 13 cents lower than a month ago and 40 cents lower than the same day last year.
The average price of gasoline in Rhode Island is nine cents below the national average of $3.44 per gallon. Today’s national average price is 9 cents lower than it was a month ago and 40 cents lower than the same day last year.
