A looming hurricane season has triggered a dip in gas prices, according to a new report from AAA which noted that the national average for a gallon of gasoline has fallen by five cents in the last week to $3.56. This is the largest one-week drop in 2024. AAA spokesperson Andrew Gross said the primary reasons for the drop are tepid demand and lower oil prices.

“Gas prices will likely keep up this slow sag now that we are past the Memorial Day travel weekend and more locations, east of the Rockies, will be selling gas below $3 a gallon,” said Gross.

Gross pointed to new data from the Energy Information Administration (EIA) which shows gas demand fell in late May from 9.31 barrels per day to 9.14 barrels per day while total domestic gasoline stocks rose from 226.8 million barrels of oil to 228.8 million barrels of oil.

Prices will continue to decrease, he said, if supply increases and oil costs continue to fall. As of the end of May, the national average for a gallon of gas is $3.55, approximately nine cents less than a month ago and a penny less than a year ago.

The least expensive markets for gas in the United States are Mississippi, Arkansas, Oklahoma and Kansas, while the most expensive markets are California where gas has risen to more than $5 a gallon followed by Hawaii, Washington and Oregon.

Globally, the price of a barrel (WTI) is approximately $77.53 with the EIA reporting that crude oil inventories decreased by 4.2 million barrels from mid-May. Meanwhile, there are approximately 454.7 million barrels of U.S. crude oil inventories, 4 percent below the five-year average for this time of year.

Gross believes these prices will continue to fluctuate based on the progression of the hurricane season, along with factors such as supply and global conflict.

“But it’s time to start weather watching as the Atlantic Hurricane Season begins on June1, and forecasters predict it will be very active,” he said. “A storm impacting the Gulf Coast oil production and refining centers could push prices temporarily higher, so stay tuned.”