Like a slowly deflating party balloon, the national average for a gallon of gasoline continued its descent this week, falling four cents since last week to $3.59. The primary reasons are weak domestic demand and oil costs dipping below $80 a barrel.

“Barring some unforeseen event impacting oil prices, this slow descent in pump prices is not likely to change anytime soon,” said Andrew Gross, AAA spokesperson. “Although Kentucky isn’t one of them, there are seven states with county gas averages below $3 a gallon. This trend will likely accelerate as more gas outlets east of the Rockies drop their prices.”

According to new data from the Energy Information Administration (EIA), gas demand rose modestly from 8.79 million b/d to 8.87 last week. Meanwhile, total domestic gasoline stocks decreased slightly from 228 to 227.8 million barrels. Lackluster pre-Memorial Day demand and steady or falling oil prices could lower pump prices as travelers look ahead to Memorial Day holiday road trips.

Today’s national average is $3.59, 7 cents less than a month ago but still 6 cents more than a year ago.

Today’s average in Kentucky dropped another penny overnight, now at $3.34. That’s 8 cents lower than one week ago, but still 8 cents higher on the month. Today’s average is still 5 cents higher than a year ago.

The average gas price in Lexington has seen an even more dramatic drop since last Friday. The average price for a gallon of regular fell 2 cents overnight to land at $3.40. Lexington’s current gas price average is 11 cents lower than the average just one week ago but still 20 cents higher than a month ago. Today’s price remains 8 cents higher than a year ago.

Going against the current trend, Ashland’s average gas price rose 9 cents overnight, currently $3.36. That’s still 3 cents less than the average a week ago. Ashland’s average price is trending about 16 cents lower than a month ago and 4 cents lower than a year ago.

Around the commonwealth, the lowest county-level average gas price can be found in Simpson County at $3.00. The highest countywide average price of gasoline in the commonwealth can be found in Pendleton County, averaging $3.59.

Checking nearby, the average price for a gallon of regular today in Ohio is at $3.50, West Virginia $3.51, Virginia $3.41, Tennessee $3.17, Indiana $3.56, Illinois $3.89 and Missouri $3.21.

Across the nation, the high spot for gas prices is California, now averaging $5.22 for a gallon of regular. Hawaii follows at $4.80.

The low spot in the nation can be found in Mississippi, averaging $3.06 for a gallon of regular.

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Oil Market Dynamics

At the close of Wednesday’s formal trading session, WTI increased by 61 cents to settle at $78.87 a barrel. Prices rose as the EIA reported that crude oil inventories had decreased by 2.5 million barrels from the previous week. At 457.0 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.

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