Gas prices expected to decline after oil prices fall

Press release from AAA: 

Today’s national average price for a gallon of gasoline is $3.41, down one cent from last week. One year ago, the price was $2.11. The New York State average is $3.57 – up one cent from last week. A year ago, the NYS average was $2.22. AAA Western and Central New York (AAA WCNY) reports the following averages:

• Batavia - $3.47 (up two cents from last week)
• Buffalo - $3.47 (no change from last week)
• Ithaca - $3.52 (no change from last week)
• Rochester - $3.53 (no change from last week)
• Rome - $3.58 (up one cent from last week)
• Syracuse - $3.51 (no change from last week)
• Watertown - $3.60 (up one cent since last week)

Gas prices are relatively steady to start this week as oil prices dropped below $80 per barrel. Demand also declined over the past week according to the Energy Information Administration (EIA). However, demand is expected to increase this week with Thanksgiving travel getting underway.

From Gas Buddy:

"With oil prices plunging nearly $10 from the recent peak of $85 per barrel, motorists will start to see gas prices decline nationwide, just in time for Thanksgiving, and the decline could stretch for several weeks," said Patrick De Haan, head of petroleum analysis for GasBuddy. "It's not impossible- so long as oil prices hold near these levels or continue falling- that the national average could shed 15 to 30 cents per gallon over the coming weeks, while some areas like California could see declines of as much as 25 to 40 cents. While there's reason to be optimistic that the peak of gas prices will soon be behind us, the decline in the price of oil is likely reflecting the possibility of a coordinated global release of oil from strategic reserves. If that doesn't happen, oil could again rally. However, with Covid cases on the rise again reducing global demand, it does seem the most likely outcome will be a drop in gas prices that could last several weeks."