Summer driving season comes to a close: What to expect this fall?

By: Thomas Roberts / September 12, 2018

Autumn-driving-615227

Last weekend we all welcomed the month of September, Labor Day celebrations and the unfortunate realization that summer has ended. Though technically the summer doesn’t end until the equinox on September 22nd, the Labor Day weekend traditionally marks the end of summer for schools, as well as the close of the summer driving season. 

Back in early April, we discussed the upcoming summer and the expectation of higher prices at the pump as well as some of the reasoning behind it. Though prices did rise to a $2.97/gal high this year, it did not reach the $3.00 - $3.10 mark many experts were calling for. As of September 1st the year-to-date national gas price average stands at $2.73/gal, up $0.41/gal from the same period last year. 

Today we have a national average of $2.83/gal and according to the American Automobile Association (AAA) we should see that price drop to a likely $2.70/gal this fall.  Let us take a look at why the consumer should see lower prices at the pump this fall season:

  • Relative Stability: The oil and gas markets have stayed relatively stable throughout the month of August though there are plenty of ongoing conditions that could influence the markets in short notice i.e. Venezuela’s situation & OPEC supply/demand decisions to name two.
  • Dip in Demand: With the end of summer and most schools starting back up all over the country, consumer demand tends to decrease as summer road trips and vacations decrease. The colder temperatures and eventual harsher conditions typically lead to less travel in general.
  • Winter-Grade switchover: Every September refineries make the switch over from the more expensive to produce summer-blend gasoline to the cheaper to produce winter-blends. This savings is typically passed on to the consumer just as the rise is in the summer driving season.

One other thing to keep in mind is Hurricane Florence and its unknown impact and aftermath. As with any other natural disaster this could greatly affect the price of gasoline depending on what happens and how devastating it is.

 

 

https://newsroom.aaa.com/2018/08/fall-2018-gas-price-forecast/

https://www.eia.gov/petroleum/gasdiesel/

https://www.marketwatch.com/story/gas-prices-are-set-to-drop-as-summer-driving-season-ends-2018-08-29

https://www.express.co.uk/life-style/cars/615227/9-ways-keep-car-in-shape-autumn

 


Categories: winter-grade, Gas Prices, hurricane florence


Thomas Roberts

Written by

Thomas Roberts

I strive to focus every day around getting better and finding success in both life and business. Through my 10+ years of sales and customer support experience, I’ve discovered an open & effective line of communication and trust are pillars to establishing long lasting relationships. My customers can expect me to always be honest, available and working to exceed expectations in order to provide the best possible service.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us