AUSTIN (Talk1370.com) -- Gas prices across the Austin area fell again this week, according to the latest data from AAA Texas' Weekend Gas Watch.
Austin drivers are paying an average of $2.84 a gallon for regular unleaded this week, down 10 cents from last week and 11 cents from a year ago.
Across the state, drivers are paying an average of $2.84 a gallon, which is nine cents cheaper than last week and 14 cents cheaper than a year ago. It's the seventh straight week the Texas average has seen a decline, and Texas continues to have the nation's lowest average.
Drivers in Midland are paying the most on average at $3.07 per gallon while drivers in the Sherman-Denison metro area are paying the least at $2.62 per gallon. The national average price for a gallon of regular unleaded is $3.47, which is 12 cents less when compared to this day last week and nine cents more than the price per gallon at this same time last year.
Analysts say that crude oil prices have been on the rebound recently. If crude prices continue to increase, the downward trend in retail gas prices may come to a pause, or even reverse. Two possible events are pushing oil prices higher, an upcoming meeting scheduled between the world's leading oil producing nations and an announcement from China that the country will ease COVID-19 restrictions.
"Gas prices are cheaper than they were last December and down 40% from record highs set in June. However, change could be on the horizon as the cost of gasoline's main ingredient, crude oil, starts to increase due to rising global demand," said AAA Texas spokesperson Daniel Armbruster. "If crude prices continue to increase, the downward trend in retail fuel prices may slow or reverse."
OPEC+ is scheduled to meet this weekend where there's a possibility the group could call for more cuts to crude oil production in hopes of tightening supply. Crude oil prices had been falling due to lower global demand as China has been enforcing stern COVID-19 lockdowns, but the country's leaders announced restrictions will ease in the coming days. This will likely lead to an increase in global demand for crude oil. Crude oil accounts for 50-60% of the cost of a gallon of gasoline. If crude prices increase and remain higher, that will likely lead to higher retail fuel prices for Texas drivers.
