Posted on 02/02/2016 7:28:32 AM PST by thackney
American drivers are now enjoying gasoline prices that haven't been this low since January 2009.
Data from the AAA shows that the average annual price for a gallon of gas has been below $2 a gallon for about a month now. Just within the past week, the national average gas price ticked below $1.80 for a gallon of regular gas, a drop of 20 cents just since the beginning of 2016.
"I think you have probably another three to four weeks of prices in this area - I think we could drop another nickel or so," said Denton Cinquegrana, chief oil analyst at Oil Price Information Service. "Around March 1, you're going to see the bottom ... probably around $1.75, maybe $1.74," he said. In some states where gasoline is cheapest, Cinquegrana said drivers could be paying in the neighborhood of $1.50 a gallon.
According to the AAA, Oklahoma is already there. On Monday, prices fell to $1.49 for a gallon of gas. Missouri is right at the $1.50 mark, while prices in Alabama, Arkansas, Kansas and Texas all average below $1.60 a gallon. AAA spokesman Michael Green said via email that nearly 10 percent of the gas stations in the country are now selling gas for less than $1.50.
Patrick DeHaan, senior petroleum analyst at GasBuddy.com, predicted that the national average price of gas this year will be $2.28, delivering $17 billion in savings at the pump compared with what drivers paid last year.
"Oversupplied market conditions will continue, and that's a big factor why gas prices are likely to stay lower than they did last year," he said.
A host of circumstances are contributing to this glut. China's economic slowdown is reducing global demand for gasoline, OPEC member nations have debated — but not yet implemented — production cuts and American shale oil producers have improved their extraction processes.
"The Saudis who started the whole era of low oil prices in 2014 have miscalculated how much more efficient U.S. producers have become," DeHaan said. "Even though the number of oil rigs is declining … shale producers have become more efficient."
Analysts do expect prices to rise by summer, as more people take to the roads and as refiners produce more expensive summer-grade gasoline, but most of the country will still see highs well below $3 a gallon. According to GasBuddy's Fuel Price Outlook 2016, we'll end the year about where we began, with an average nationwide price of $2.01 a gallon.
Yes, by definition it is a spike, but it's not going to spike to $3 or $3.50," Cinquegrana said.
"Market fundamentals remain unchanged and a 'lower-for-longer' sentiment is beginning to prevail amongst speculators," the AAA said in a recent report. For drivers, that's the best news they could get.
It is taking forever to fall here in New Jersey
The liberals want to tax gas more because it is “cheap” and I have a feeling the fueling stations colluded to keep it from dropping off like it should. Keep the profit themselves so the state doesn’t step in a steal it with a tax.
I took a look at that. Really cool!
West side of Missouri- $1.37
Still 2.59 or so in so Cal.
$1.33 in Oklahoma City.
Assorted levels of government are already seeing the drop in prices as a good opportunity to sneak in some more taxes. In Iowa they implemented a ten cents per gallon tax saying “the people won’t feel it” with the lower prices. The tax is supposedly for “roads and bridges” but they don’t explain what happened to the previous roads and bridges tax money. Why can’t the swine let us keep the extra money for a change so we can get ahead!?!
You can thank the “Global Warming Solutions Act” and a host of other taxes and reasons for that. Namely, CARB. >spit!
I recall when I predicted that gas would come back below $2 a gallon (I think it was in 2010), I was widely pooh-poohed as pollyannish.
Many on freerepublic loudly proclaimed that gas would never fall below $3 a gallon, ever again.
Because conspiracies were keeping the price high...
There is a conspiracy of course. It is out in the open and called OPEC. It appears to be falling apart, and would do so a lot sooner if we had a president that worked for America instead of against the country.
You have to remember that gas prices were in the $1.40’s when Ubanga came into office...
Within a mile of Lear Corporation’s HQ in Southfield, MI, a CITGO station has Regular no-lead for $1.42 or less. Is it ironic or just uncanny that at the Lear complex there, their R & D facility (Hybrid Automotive Electrical Systems) is trying to develop green technologies to help combat global warming, climate change, and to save the planet from fossil fuels and carbon emissions?
Wow, $1.37 is high. I just looked and now $1.32. Down 6 cents on the futures.
$1.33 down here in the Ozarks. Love filling up my /p/u for less than $30. Instead of more than $75!!!
Missouri Republicans have a veto proof Senate and House
So Republican Senators want to talk about raising the tax on diesel fuel by 3.5 cents a gallon and on all other fuels by 1.5 cents per gallon.
They are hopping automobile drivers will say 1.5 cents per gal is not that much.
The hidden tax of 3.5 cents per gallon on fuel used by 18 wheelers and mid sized delivery trucks does not attract that much attention because the legislators say only trucks pay it.
18 wheelers and mid sized delivery trucks haul a huge percentage of the products we use everyday.
They even haul the gasoline we burn in our cars.
I’d have to learn how to ride a dirt bike.
Look for more urban children to be named “Escalade”!
Not me. I called you "Obviously high on pot".
And look at you now, correct the whole time!
Looking forward to more of your not-so-crazy predictions.
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