by Daniel J. Graeber
Washington (UPI) Dec 5, 2017
Seasonal factors finally caught up with the U.S. gas market and, with refineries making a cheaper winter blend, the price at the pump is lower, analysts said.
Motor club AAA lists a national average retail price for regular unleaded gasoline at $2.48 per gallon for Tuesday, the lowest price in more than a month. Lower demand because of the cooler weather and a cheaper winter blend of gasoline has finally brought relief to consumers.
"On the week, 90 percent of states saw their gas price average drop - some even by double digits," Jeanette Casselano, a AAA spokesperson, said in a statement.
U.S. refineries switch late in the year to a winter blend of gasoline, which is less expensive to make because more steps are needed with the summer-blend to prevent excessive evaporation. Gas prices, however, are still relatively high because of crude oil prices. The average price for gas in June was around $2.29 per gallon.
The Organization of Petroleum Exporting Countries started cutting production in January and agreed last month to keep it under control through 2018. That, and higher U.S. oil exports, means supplies are at a premium. Last week, Patrick DeHaan, a senior analyst at GasBuddy, said, in essence, there are "more hands in the cookie jar" when it comes to U.S. oil and gasoline supplies.
For the second year in a row, the United States is on pace to become a net gas exporter once the year is over. Nevertheless, federal data show domestic demand is lower, which has supported a slight drop in gas prices so far in December.
By market, the West Coast remains the most expensive in the country, with California topping the Lower 48 with $3.16 per gallon on average. By AAA's estimate, however, the region has plenty of gas on hand and prices there should drop at least through the rest of the week.
The Great Lakes market, meanwhile, is the most volatile. Indiana saw gas prices drop 14 cents from last week and 40 cents from last month. Drivers in the region got some relief after pipeline company TransCanada restarted its Keystone pipeline, following a November spill in South Dakota.
DeHaan, however, said to enjoy it while it lasts. Domestic oil inventory levels are lower than they were last year and gas prices are actually the highest they've been in three years.
"Motorists should enjoy the falling prices now because it's likely that prices may again rise approaching the New Year as oil prices continue to show strength," he said in a statement.
The federal government estimates the average price for gas will be around $2.45 per gallon next year, 5 cents more than the anticipated average for 2017.
Washington (UPI) Dec 1, 2017
Enthusiasm caught up with OPEC's decision to extend production cuts through 2018, with a de facto lid on Libya and Nigeria sending oil prices higher on Friday. Crude oil prices jumped early Thursday morning in anticipation of an agreement to add nine more months to a deal that sidelined about 1.2 million barrels of oil per day from the global market. The deal is aimed at draining ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|