Gas Prices Have Bottomed For Now

After declining a record 123 consecutive days, U.S. gas prices seem to have bottomed out. According to this week's Energy Information Administration "Gasoline and Diesel Fuel Update", average US gas prices edged up from $2.044 per gallon on January 26 to $2.068 per gallon on February 2. However, US gas prices are still well below the $3.292 per gallon they were a year earlier. Average gas prices had dropped to nearly $2 per gallon due to the steep decline in the cost of crude oil during the previous six months. Gas prices generally are at or near seasonal lows in January due to relatively weak demand. Many Americans cut back on driving and travel during the cold winter months, which can allow gasoline supplies to build. "Many drivers are noticing an uptick in gas prices for the first time in months," said Avery Ash, AAA spokesman. "It is typical to see gas prices increase this time of year due to refinery issues, yet hopefully the consumer impact will be less problematic given how low prices are today." AAA expects gas prices to increase this month due to refinery maintenance and decreased production. Gas prices in February have increased during the previous five years by an average of 22 cents per gallon, according to AAA.

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