Tuesday, January 27, 2015YOUNGSTOWN, Ohio -- The price of gasoline is down 9 cents in Northeast Ohio, the latest AAA East Central’s Fuel Gauge report shows, as the national average heads toward $2 per gallon.
In Northeast Ohio, the average price of a gallon of gas this week is $1.893, down from $1.984 during the week of Jan. 19 and from $3.295 the week of Jan. 28, 2014. In Youngstown, the gauge shows the price at $1.896 per gallon, and at $1.874 in Niles. In Cleveland, the price was $1.902.
While the streak of daily declines in the national averages continues, the rate of decline has slowed in recent days, AAA reports. The organization attributes the slowed decline to prices in some Midwestern states moving higher over the past week due to a series of refinery issues in the region.
AAA also notes the potential impact of a major winter storm that was projected to dump up to three feet of snow on parts of the region. While a snowfall such as this might pressure gasoline prices immediately higher on distribution concerns, the longer term impact is expected to be downward pressure on pump prices from lower demand, as drivers stay off the roads.
The death of Saudi Arabia’s King Abdullah caused the global oil markets to slightly rally this past week on rumors that OPEC’s largest producer could possibly reassess its production levels and potentially decrease the current glut in global oil supply, AAA said. "By sustaining its current production levels, the resiliency of high-cost production countries like the United States and Canada will continue to be tested as the market is left to self-regulate at price levels that have not been seen in more than half a decade," the organization states.
Although gas prices are likely to increase this spring due to seasonal demand and maintenance, barring any major increase in the global price of crude, AAA says its expects the national average to remain below $3 per gallon during 2015.
Published by The Business Journal, Youngstown, Ohio.
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