Gas Prices in Massachusetts and Massachusetts Stop Falling
Gas Prices,The national average for a gallon of regular gas has dropped for seven straight weeks, providing relief to many household budgets. The national average is now nearly $4 and is at or below $4 in 20 states, according to AAA. While Massachusetts prices haven’t been as low as other states, they are still well below the national average.
Market forces
Gas prices in Massachusetts stopped falling in July after a long steady drop. The decline is attributed to a drop in oil prices. Despite the recent drop in the price of oil, investors are worried that it is only a temporary fix and that prices will rise again. However, it is not clear whether gas prices will rise or fall for the rest of the year.
The price of gas in Massachusetts is now $4.52 per gallon, an 11-cent drop from last week. It has now dropped for three straight weeks. Earlier in the summer, gas prices in Massachusetts were above $5 a gallon.Gas Prices,The national average for a gallon of regular gas has dropped for seven straight weeks, providing relief to many household budgets.
Seasonal demand shifts
Gas prices in Massachusetts stopped falling on Wednesday after a steady decline since June. The average price for a gallon of unleaded gasoline in Massachusetts dropped 11 cents last week. However, Massachusetts is still above the national average of $3.75, and the state’s prices are still more than a dollar higher than the national average. While Massachusetts prices are still higher than the national average, they are still far below the record highs set last year.
Despite the drop, gas prices in Massachusetts still remain high compared to last year. Dukes and Nantucket counties have the highest average prices in the state, while Hampshire and Hampden counties have the lowest prices. AAA is also reminding drivers to keep children out of the car during the hotter months. There have been 11 reported cases of children suffering from heat stroke in hot cars this year.
OPEC cuts oil production
Gasoline prices in Massachusetts stopped falling on Monday as OPEC cut production in October. This pushed prices down from $5 a gallon in June to $3.79 on Monday, but the drop was not as rapid as the drop in other states. The Organization of Petroleum Exporting Countries has cut production by about 1.2 million barrels per day for October and November, bringing the average price of gas in Massachusetts to $3.29 a gallon, which is less than half of what it was in June.
This decrease in production is a good thing for the US economy, which is the world’s largest consumer of oil. The US is losing its domestic market to other oil exporters, which has led to the oversupply and falling prices. OPEC and Russia have joined forces to balance the market.
Hurricane Harvey causes spike in prices
Gas prices in Massachusetts increased 44 cents in one week after Hurricane Harvey hit the U.S. This is the highest one-week spike since Hurricane Katrina in 2005. AAA Northeast reports that the surge was caused by higher oil prices and demand. The energy department is watching Hurricane Irma’s track to see if the storm can affect U.S. energy infrastructure. AAA Northeast also predicts the spike to be short-lived.
The recent hurricane Harvey flooded several U.S. states, including Texas. The storm dumped more than 50 inches of rain in some areas. As a result, the demand for gas is higher than the supply of gasoline. This is causing a spike in gas prices in Massachusetts, and it will take a while for prices to return to normal.
