As oil prices continue to fall on world markets, U.S. drivers are paying the lowest prices for gas in nearly seven years. The national average for regular unleaded was $2.01 early Thursday, according to the AAA Daily Fuel Gauge Report. If prices fall below $2 it will mark the first time that's happened since March 2009, when a deep recession reduced demand for gas.
Related: Despite Stall, Christmas Gas Prices Under $2 Projected
U.S. oil was trading below $37 a barrel Thursday morning, a seven-year low and about $25 less than a year ago. Oil had hovered at more than $40 for a few weeks but started its latest slide after OPEC announced last week that it would maintain current production and continue to pump a large quantity of oil into a market that many analysts view as oversupplied.
AAA said pump prices should continue to decline into 2016, barring any unexpected developments affecting the production or price of oil. "OPEC's decision at its meeting last week to sustain its current production levels sent ripples through the global oil market and has contributed to lower oil prices. The cartel is not scheduled to reconvene until June 2016, and in the interim the imbalance between supply and demand will likely persist," AAA said in a statement.
A year ago, the national average for regular was $2.64, and two years ago it was $3.26. AAA said the national average for premium gas was $2.52 Thursday, 52 cents less than a year ago. Diesel fuel was at $2.37 nationally, $1.11 less than a year ago.
Compared to December 2013, motorists who use 15 gallons of regular weekly are spending about $19 less per week to fill their tank. Whereas in late 2013, many motorists may have wondered if they would see $2 gas again, the average price for regular is less than that in 24 states, according to AAA, and in 25 states by GasBuddy's calculations.
AAA said Missouri had the lowest statewide average for regular at $1.77, followed by Michigan, $1.79; South Carolina, $1.80; and Indiana and Oklahoma, $1.81.
Hawaii had the most expensive gas at $2.78 for regular; California, at $2.67, was the only other state averaging more than $2.50. However, Hawaiians are spending about $1 less per gallon than they were at this time last year. The same is true in Alaska, where the current average of $2.41 is $1.02 less than a year ago.
from Cars.com News http://ift.tt/1Y7Mo0W
No comments:
Post a Comment