Gas prices decline gradually amid tensions in Middle East

The average price of gas dipped to $3.53 for the week ending October 26, a three-cent drop from the week prior, according to the latest report from AAA. Pump prices on average are 30 cents less than a month ago and 23 cents less than a year ago.

Gas prices are continuing to fall at a sluggish pace due to elevated oil prices. The price of oil ticked up Wednesday as Israel readies for ground operations in Gaza.

"The oil market is very sensitive to global events, and fears of a widening war in the Middle East is keeping oil prices elevated for now," AAA spokesperson Andrew Gross said. "Domestically, drivers will likely see pump prices keep up this slow slide toward the holidays."

The West Texas Intermediate (WTI) – an oil price benchmark – increased by $1.65 to $85.29 at the close of Wednesday’s formal trading session. Gas demand decreased from 8.94 to 8.86 million barrels per day last week, according to new data from the Energy Information Administration (EIA). Drivers may find more relief at the pump in the weeks ahead if oil prices continue to drop, AAA said. 

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Since the past Thursday, these 10 states have seen the largest decreases in their average gas prices, according to the AAA. 

Fuel costs in select states linger around 3 dollars a gallon. Here are the nation’s top 10 most affordable markets.

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Rising inventories are contributing to the continuous fall in gas prices, according to a report from GasBuddy. Gasoline inventories are up 15.6 million barrels or 7.5% higher than a year ago and are 1% above the five-year average for this time of year. 

"It's important to note which regions saw increases/decreases as this information likely drives prices up (in the case of falling inventories) or down (in the case of rising inventories)," Patrick DeHaan, GasBuddy head of petroleum analysis, said.

With winter approaching, and fewer Americans itching to leave their homes, demand for gas diminishes, Dehann noted in a separate report. 

"As air temperatures trend downward as we progress into fall, gasoline prices have seen another week of their own seasonal fall," Dehann said. "The national average is on the cusp of falling to the lowest level since March, something that could happen this week. Demand for gasoline continues to weaken as we get closer to seeing the first snow flurries fly across some areas of the country, and against the backdrop of winter, there isn’t as much desire to get out."

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