BALTIMORE, MD—The national average gas price in the U.S. declined by 4.6 cents over the past week, reaching $3.13 per gallon on Monday, according to GasBuddy data. This marks a decrease of 11.6 cents from the previous month and a significant drop of 56.2 cents compared to last year.

However, the recent decline may be short-lived, as oil prices surged to their highest level in months following Iran’s attack on Israel. This surge, attributed to concerns over potential disruptions to oil supplies, could lead to a halt in the recent price declines and even a potential increase in gas prices, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

The national average diesel price remained unchanged at $3.54 per gallon.

Oil prices have been on an upward trend, climbing from $68.38 per barrel a week ago to $75.72 per barrel, a notable increase of $1.34 per barrel. This surge is largely attributed to heightened geopolitical tensions in the Middle East, particularly following Iran’s attack on Israel and the subsequent possibility of a wider conflict.

Concerns over the potential impact of sanctions on Iran’s oil production and the possibility of retaliatory strikes targeting Iran’s oil infrastructure have further contributed to the market’s anxiety.

Despite OPEC holding significant spare capacity, the escalating situation in the Middle East has raised concerns about potential supply disruptions. However, analysts anticipate that OPEC production cuts, scheduled for 2023, are expected to ease towards the end of 2024, potentially exerting downward pressure on oil prices in the coming months.

See previous gas price reports here

In and around the Nottingham area, the cheapest gas this week could be found at these locations…

• Bowleys Quarters
• Carney
• Edgewood
• Essex
• Fallston
• Joppa
• Kingsville
• Middle River
• Nottingham
• Overlea/Fullerton
• Parkville
• Perry Hall
• Rosedale
• Rossville
• Towson
• White Marsh

Photo via Pixabay

This article was written with the assistance of AI and reviewed by a human editor.