Gasoline Falls below $3 per Gallon for the First Time Since 2010

Michael Green Contact Tile(WASHINGTON, November 3, 2014) After a streak of 1,409 consecutive days of a national average above $3 per gallon, the price for regular unleaded gasoline fell to $2.99 per gallon on Saturday, which marked the first time the AAA indicator had fallen below that mark since December 22, 2010. Today’s price is six cents less than one week ago,  33 cents less than one month ago, and 28 cents less than the price consumers paid one year ago. Today’s national average, $2.98, is the lowest price paid since December 14, 2010 ($2.979).

National pump prices usually drop during the autumn season due to decreasing demand and the cost savings associated with producing winter-blend gasoline. However global oil prices have declined more than anticipated, as supply has outpaced demand, contributing to even greater savings at the pump for drivers. Barring an unexpected market-moving development this winter, motorists can expect to pay retail prices that are relatively low, and could see the price continue to tick downward even a little further as gasoline stations adjust to falling oil prices in the global market. AAA predicts the national average could fall another 5-15 cents in the coming weeks, which could make for the cheapest Thanksgiving gas in half a decade.

Avg Gas Prices 2011-2014

Averages in nearly half (23 states) of the country are currently below the $3 per gallon threshold. The nation’s least expensive market for retail gasoline, South Carolina ($2.72), is registering an average unseen by motorists in the state since May 2010. Hawaii ($4.04) continues to lead the market registering the nation’s most expensive average, and remains the only state with an average price above $4 per gallon. Drivers in New York ($3.35), Connecticut ($3.30) and California ($3.30) have seen averages in their states fall by a nickel or more over the last seven days, but continue to pay the highest prices at the pump in the continental United States.

10 least Expensive Avg Gas Prices-11-03-14

Over the last seven days, the price has ticked downward in 47 states and Washington, D.C. Drivers in Indiana (-15 cents), Michigan (-13 cents), Oregon (-10 cents) and Montana (-10 cents) are saving the most in the nation; and the price at the pump is discounted by at least a nickel in a total of 33 states and Washington, D.C., during this period. Contrary to this trend, consumers are paying fractions of a penny more at the pump in North Dakota, South Dakota and Ohio.

Month-over-month the average price for retail gasoline reflects double-digit savings in every state and the District of Columbia. Over this same period, consumers in 39 states and Washington, D.C. are experiencing some substantial “sticker delight” with savings of a quarter or more per gallon led by: Oregon (-53 cents), Washington (-50 cents), Georgia (-45 cents) and Kentucky (-41 cents). Year-over-year comparisons reflect a similar picture with drivers in every state experiencing savings at the pump. The average price to refuel is discounted by a dime or more in 41 states and Washington, D.C., with consumers in Tennessee (-39 cents), Alabama   (-38 cents), California (-38 cents), South Carolina (-37 cents), and Georgia (-37 cents) saving the most per gallon over this same period.

Top10 Yearly Savings-11-03-14

Abundant global oil production — particularly the substantial increases to U.S. production — continues to outweigh any concerns of possible supply disruptions due to geopolitical instability. This assessment has been validated by the price of crude dropping by approximately 25 percent since June at the same time as violence in Iraq and tensions in Eastern Europe have continued to grab headlines. Market participants continue to speculate about how the Organization of Petroleum Exporting Countries (OPEC) will respond to falling prices, and whether the cartel will agree to cut or sustain production. Iran and Kuwait recently indicated that a reduction in production was unlikely. However the world’s largest exporter of petroleum, Saudi Arabia, has yet to publicly comment on the subject. West Texas Intermediate (WTI) closed out last week down 58 cents to settle $80.54 per barrel at the close of Friday’s formal trading on the NYMEX. At last look, with no market-moving news over the weekend, WTI was trading slightly higher this morning.

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