High oil prices put brakes on falling gas prices, analysts say

Gasoline prices are stabilizing in the Pittsburgh area and across the nation as oil remains above $100 per barrel, according to industry analysts.

Prices at the pump had been coming down since setting record highs on March 11, at $4.44 per gallon in Pennsylvania and $4.33 nationally, according to AAA.

But with oil remaining near $110 per barrel, the drop in gas prices has slowed, AAA said. The national average is now $4.24, down 9 cents from the peak but just a penny from last week. The average in Pennsylvania is $4.32, down 12 cents from the record but largely unchanged in the past week.

According to AAA, demand for gas is defying seasonal trends in being down for a second straight week, possibly caused by higher prices and consumers changing their driving habits.

Less demand is contributing to price decreases, but the steady increase in the price of oil is slowing that decline, according to AAA.

“The global oil market reflects the volatility caused by the war in Ukraine grinding onward,” AAA spokesman Andrew Gross said. “And with oil prices refusing to fall, the price at the pump is likewise meeting resistance at dropping further.”

Patrick De Haan, head of petroleum analysis at price-tracking service GasBuddy, also noted the slowdown in the decline of gas prices with oil remaining above $100 per barrel after having dropped under that level a few weeks ago.

“For the near future, we’ll see a mix of slight decreases and some potential increases mixed in,” De Haan said. “While the national average should start to stabilize for the time being, there’s no telling what’s around the corner, at least for now, as the volatility in oil prices persists.”

Average gasoline prices in the Pittsburgh area are unchanged in the last week, remaining at $4.30 on Monday, according to GasBuddy and its survey of 731 stations. That’s 62.3 cents more than a month ago and $1.29 more than a year ago.

Prices in the Pittsburgh area ranged from $4.06 up to $4.59, a difference of 53 cents per gallon. Across Pennsylvania, prices ranged from $3.83 up to $5.07, a difference of $1.24, according to GasBuddy.