(GasBuddy) After rising for two weeks, the national average price of gasoline declined over the last week, falling 4.6 cents compared to a week ago, and stands at $3.13 per gallon Monday, according to GasBuddy® data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country. The national average is down 11.6 cents from a month ago and is 56.2 cents per gallon lower than a year ago. The national average price of diesel is unchanged in the last week and stands at $3.54 per gallon. "While the national average dipped slightly in the last week, Iran's attack on Israel has at least temporarily caused oil prices to surge to the highest level in months, which could cause the declines to cease for now and could lead to a rise in gas prices for many Americans," said Patrick De Haan, head of petroleum analysis at GasBuddy. "In addition to the escalation in the Middle East, hurricane season remains active, with Hurricane Milton now heading toward a likely landfall in Florida. As a result of potential evacuations, GasBuddy's Fuel Availability tracker will remain online for areas likely to be affected by Milton. For now, motorists in most areas can expect to see more increases in gas prices primarily due to tensions in the Middle East, but I remain hopeful that a $2.99 national average remains possible this fall." OIL MARKETS Oil prices have surged after Iran's attack of Israel again raised the possibility of a widening conflict that could impact oil supplies. Oil has rallied sharply over the last week, climbing from $68.38 per barrel a week ago to $75.72 per barrel, up $1.34 per barrel so far this morning. Brent crude oil has also seen a sharp rebound and was last up $1.22 per barrel to $79.27 in early Monday trade, up from $71.78 a week ago. While OPEC holds significant spare capacity, oil markets have been concerned over escalations in the Middle East, and possibilities that sanctions on Iran could slow oil production in Iran. An Israel retaliation strike could also target Iran's oil infrastructure, which could also significantly impact oil prices moving forward. Oil could continue to rally if Israel moves to strike Iran, while OPEC production cuts from 2023 are expected to ease going into the close of 2024, which would offer some downward pressure on oil in the months ahead. OIL AND REFINED PRODUCTS Last week’s report from the EIA showed a 3.9 million barrel increase in U.S. crude oil inventories, while the SPR rose 700,000 barrels and stands at 382.6 million barrels. Gasoline inventories fell by 1.1 million barrels and now stand nearly 6 million barrels lower than a year ago, while distillate inventories fell by 1.3 million barrels and are up nearly 3 million barrels from a year ago. Refinery utilization fell by 3.3 percentage points to 87.6% as maintenance and some outages contribute to the drop. FUEL DEMAND According to GasBuddy demand data driven by its Pay with GasBuddy™ fuel card, U.S. retail gasoline demand saw a drop of 0.5% for the week ending October 5 P(Sun-Sat). Broken down by PADD region, demand fell 1.7% in PADD 1, rose 3.1% in PADD 2, fell 4.0% in PADD 3, fell 2.3% in PADD 4, and fell 4.3% in PADD 5. GasBuddy models U.S. gasoline demand at 8.58 million barrels per day. GAS PRICE TRENDS The most common U.S. gas price encountered by motorists stood at $2.99 per gallon, down 20 cents from last week, followed by $3.09, $3.19, $2.79, and $2.89 rounding out the top five most common prices. The median U.S. gas price is $3.00 per gallon, down 9 cents from last week and about 14 cents lower than the national average. The top 10% of stations in the country average $4.37 per gallon, while the bottom 10% average $2.55 per gallon. The states with the lowest average prices: Mississippi ($2.63), Louisiana ($2.66), Oklahoma ($2.66). The states with the highest average prices: California ($4.60), Hawaii ($4.51), and Washington ($3.96). Biggest weekly changes: Georgia (-26.4¢), Ohio (-13.5¢), Michigan (-12.6¢), Indiana (-11.2¢), Colorado (-10.0¢) DIESEL PRICE TRENDS The most common U.S. diesel price stood at $3.39 per gallon, unchanged from last week, followed by $3.69, $3.29, $3.49, and $3.59 rounding out the top five most common prices. The median U.S. diesel price is $3.44 per gallon, down 1 cent from last week and about 10 cents lower than the national average for diesel. Diesel prices at the top 10% of stations in the country average $4.44 per gallon, while the bottom 10% average $2.90 per gallon. The states with the lowest average diesel prices: Texas ($3.04), Oklahoma ($3.14), and Mississippi ($3.14). The states with the highest average diesel prices: Hawaii ($5.32), California ($4.86), and Washington ($4.28). Biggest weekly changes: Georgia (-24.7¢), Tennessee (+6.7¢), Alaska (+6.2¢), Texas (+6.2¢), New Mexico (+5.9¢).