Gas prices decline despite Middle Eastern uncertainty: AAA

The average price of gas dropped to $3.64 for the week ending October 12, a 12-cent drop from the week prior, according to the latest report from AAA.

Gas prices in the U.S. declined as concerns weighed on the oil market days after the ongoing armed conflict in Israel led to geopolitical concerns in the Middle East. The average price at the pump is 19 cents lower than a month ago and 28 cents less than a year ago. 

The West Texas Intermediate (WTI) – an oil price benchmark – decreased by $2.48 to $83.49 at the close of Wednesday’s formal trading session. Oil prices spiked earlier this week after the events in Israel, however, they have since dropped. Additionally, gas demand increased from 8.01 to 8.58 million barrels per day last week, according to new data from the Energy Information Administration (EIA).

“As long as this war does not spread to include more countries in the region, the effect on the oil market will remain muted,” AAA spokesperson Andrew Gross said. “Here in the US, there are now nine states with some county gas averages below $3 a gallon, and this number will likely increase in the coming weeks.”

One way to lower your overall cost of car ownership is by shopping for cheaper auto insurance to reduce your monthly premiums. Visit Credible to compare your options without affecting your credit score.

HOUSING, GAS PUSH INFLATION UP HIGHER THAN EXPECTED IN SEPTEMBER 

Average U.S. gas prices at a glance 

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

• California (-23 cents)
• Nevada (-19 cents)
• Arizona (-18 cents)
• Iowa (-16 cents)
• Indiana (-16 cents)
• Texas (-15 cents)
• Oklahoma (-15 cents)
• Michigan (-15 cents)
• Minnesota (-15 cents)
• Washington (-14 cents)

Fuel costs in some states hover at just over 3 dollars a gallon. Here are the country’s top 10 most affordable markets.

• Georgia ($3.10)
• Mississippi ($3.11)
• Texas ($3.14)
• South Carolina ($3.16)
• Alabama ($3.16)
• Delaware ($3.17)
• Louisiana ($3.18)
• Tennessee ($3.19)
• Ohio ($3.21)
• Arkansas ($3.23)

If you are looking to reduce your car ownership costs you may find some savings by shopping for cheaper auto insurance premiums. Credible can help you compare multiple insurance quotes free of charge.

AMERICANS SAY CREDIT CARDS ADD TO THE CHALLENGE OF MANAGING FINANCES: SURVEY

Gas adds to higher-than-expected September inflation 

The annual inflation rate was unchanged from August at 3.7% in September, according to the Consumer Price Index (CPI) released by the Bureau of Labor Statistics (BLS). However, on a monthly basis, inflation rose 0.4% in September, slightly above the 0.3% pace that economists expected. 

Housing costs had the greatest impact on the monthly price increase in September, while gas costs also had a large impact on the gain in inflation. Gas costs have the potential to move prices higher as the situation in the Middle East continues to unfold.

The possibility of higher oil prices would likely have an impact on near-term CPI forecasts, according to Jim Baird, Plante Moran Financial Advisors’ chief investment officer. 

“Once the impact of recent energy price volatility is stripped out, inflation still appears to be gradually receding, but at a pace that could frustrate both consumers and policymakers,” Baird said. “A return to the [Federal Reserve’s] 2% target still appears to be further on the horizon than most would prefer, although a more pronounced slowdown in the economy could change that picture quickly.

Several factors impact your auto insurance rate — from your credit score to your driving habits. Shopping for the best provider is a time-tested way for drivers to help reduce their car insurance costs. Visit Credible to speak with a car insurance expert and get your questions answered.

HOME INSURANCE PRICES INCREASED NEARLY 25%: POLICYGENIUS 

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.