Gasoline prices continue to fall in the final weeks of summer as demand wanes and domestic production increases, but markets are closely monitoring renewed tropical storm activity in the Atlantic and rising geopolitical tensions in the Middle East.

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, according to a press release from AAA Northeast.

The average price of gasoline in Rhode Island has dropped five cents from last week and is averaging $3.35 per gallon. Monday’s price was 13 cents lower than a month ago and 40 cents lower than a year ago. The average price of gasoline in Rhode Island is nine cents lower than the national average.

“It appears that gas prices are falling seasonally as the summer season comes to a close,” said Jillian Young, public relations director for AAA Northeast. “But tensions in the Middle East and renewed tropical storms could turn the tide.”