Gas prices continue sliding due to rising inventories and falling prices for crude oil.
Falling crude oil prices and big inventories have contributed to the national average price for regular unleaded gasoline moving lower with the average price at the pump has fallen for 17 consecutive days, for a total savings of 12 cents per gallon, according to the latest survey from AAA.
Motorists are enjoying lower prices at the pump, with the average reflecting a discount of six cents per gallon week-over-week and nine cents per gallon month-over-month. Prices remain significantly lower than this same date last year and the national average is down 85 cents per gallon and the national average currently sits at $2.20 per gallon, the lowest price since February.
Market fundamentals continue to suggest that the national average could fall below the $2 per gallon benchmark before the end of the year for the first time since 2009, barring any unanticipated disruptions in supply or unforeseen jumps in the price of crude oil.
A total of eight states are posting averages below the $2 per gallon threshold, with consumers in South Carolina at $1.89 per gallon, Alabama and Mississippi at $1.92 per gallon paying the lowest averages at the pump. Drivers in Hawaii at $2.89 per gallon are paying the nation’s highest average price to refuel their vehicles.
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States located west of the Rockies continue to post the highest averages for retail gasoline with California, Nevada, Alaska and Washington round out the top five most expensive markets for retail gasoline. However, for the fourth consecutive week drivers in every state are paying averages below $3 per gallon.
Motorists in 27 states are saving a nickel or more per gallon week-over-week and three Midwestern states are posting double-digit savings over this same period as prices in Indiana dropped by 17 cents per gallon, Ohio dropped by 16 cents per gallon and Illinois 11 cents per gallon.
Drivers in 45 states and the District of Columbia are experiencing monthly savings in the price of retail gasoline. Pump prices are down a nickel or more per gallon in 32 states and Washington, D.C., and consumers in 17 states have seen prices decline by double-digit increments month-over-month. Alaska, Indiana, Idaho, Colorado and Utah are posting the largest savings in price over this same period. Prices have moved higher in five states, although in a much less dramatic fashion.
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Significant yearly discounts in the price of retail gasoline persist, and drivers 45 states and Washington, D.C. are saving at least 75 cents per gallon when they refuel their vehicles. A total of six states are posting year-over-year savings of $1 or more per gallon, with the largest savings at the pump.
Meanwhile, reports are beginning to surface that current low prices for crude oil are impacting outlooks for oil companies, evidenced by announcements in cutbacks and delays in new project investments. Technical experts from both OPEC and non-OPEC countries convened recently and many hoped action to address the market’s oversupply was on the horizon, but cuts to production were not discussed.
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The rig count in the U.S. fell for the eighth consecutive week, however the latest data from the U.S. Department of Energy points to an increase in domestic crude oil stocks. West Texas Intermediate crude oil fell below the $45 per barrel benchmark last week for the first time since early October.