Falling gas prices arrive as destabilized Middle East raises concerns, analyst says

Even as oil prices rise in reaction to the Hamas attack on Israel, an oil industry analyst is optimistic that the national average could continue to fall another 25 to 45 cents by late November.

In the past week, the national average fell about 10 cents per gallon to $3.67, while the average in the Pittsburgh area came down 2.5 cents per gallon to $3.87, according to price-tracking service GasBuddy.

“At long last, the decline in gas prices that we’ve been waiting to see has arrived, and the locomotive of falling prices has only recently started on a downhill, gaining momentum,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “However, some new caution signs have emerged with the recent attacks on Israel, potentially destabilizing a sensitive region. I’m hopeful the violence won’t spread, limiting the impact to these falling gas prices.

“Even the price of diesel has seen downward pressure with oil prices plummeting last week on fears that the Fed will be forced to continue raising rates, eating into demand growth, leading a barrel of crude to drop into the mid-$80s, but we remain concerned about a potentially destabilized Middle East and the potential impact to oil prices should the region see violence escalate,” he said.

According to AAA, Pennsylvania’s statewide average was about $3.83 on Monday. That’s about 5 cents less than a week ago, 3 cents less than a month ago and 6 cents less than a year ago.

County averages ranged from about $3.60 up to $4 per gallon, according to AAA. County averages in the Pittsburgh region:

• Allegheny: $3.89

• Armstrong: $3.91

• Beaver: $3.90

• Butler: $3.81

• Washington: $3.87

• Westmoreland: $3.90

According to GasBuddy price reports, prices in the Pittsburgh area ranged from $3.19 up to $3.99 per gallon, a difference of 80 cents per gallon. Statewide, prices ranged from $3.15 up to $4.79, a difference of $1.64 per gallon.

Neighboring areas and their current gas prices, according to GasBuddy:

• Akron: $3.15, down 13 cents from last week.

• Cleveland: $3.30, down 14 cents from last week.

• West Virginia: $3.51, down 6 cents from last week.

The national average price of diesel has fallen 4 cents in the past week and stands at $4.48 per gallon, GasBuddy reported.