National Gas Average Hits $4.00 as U.S. Output Tops 14 Million Barrels

The average price for a gallon of regular unleaded gasoline fell to exactly $4.00 in the United States this week. This marks a 16-cent drop from last week and a 37-cent decrease compared to a month ago. Robert Sinclair of AAA Northeast stated that the pace of declines at the pump has accelerated in recent days. He noted the national average is on the verge of falling below $4 for the first time since July 19.

In the Northeast, prices followed a similar downward trend. The average in New York City dropped ten cents from last week to $4.26 per gallon. Long Island saw a one-cent decrease to $4.12. Connecticut prices fell six cents to $4.18, while New Jersey saw a seven-cent drop to $4.05. These figures represent savings of 22 to 30 cents compared to prices from one month ago in the region.

Crude oil prices fell approximately 12% during the previous week. West Texas Intermediate (WTI) hovered around $90 a barrel before dipping below that threshold in weekend trading. Brent crude declined to about $98 before also falling below $95 on the weekend. Market analysts attributed the movement to reports that the United States and Iran are open to renewing talks to end their conflict. The price decline also followed the results of last week's U.S. midterm elections.

Domestic oil producers set an all-time weekly production record last week. The Energy Information Administration (EIA) reported that output exceeded 14 million barrels per day. This was the first time weekly production eclipsed the 14 million barrel mark. Refiners also increased output, reaching 94.5% of capacity, a two percent weekly gain and a significant jump from the 86% figure recorded the same time last year.

Gasoline demand remained strong despite high prices earlier in the year. According to the EIA, daily demand climbed by 450,000 barrels to reach 8.8 million barrels. Domestic inventories fell by 200,000 barrels during the week. Current supplies stand at 209 million barrels, which is 2.9 million barrels higher than the same period last year but still below seasonal averages by approximately 2%.

The national price distribution remains uneven. North Carolina and Texas currently report the lowest prices in the country at $3.25 and $3.46 per gallon, respectively. California and Hawaii hold the highest prices at $5.74 and $5.63. The national average remains 94 cents higher than it was on this day last year, when the price stood at $3.06.

AAA Northeast provides the data through its Nov. 9 survey of fuel prices. The organization serves more than 6.9 million members across Rhode Island, Massachusetts, Connecticut, New Jersey, New Hampshire, and New York. Their data tracks averages by state, metro area, and fuel grade including regular, plus, premium, and diesel.