//
you're reading...
Business, Energy

Lower Gas Prices Are A Bright Spot This Columbus Day Weekend

GasPump_DresserWayne_GreeceGiven the stalemate in Washington, DC with the government shutdown now in its 10th day, lower gas prices and the upcoming Columbus Day Weekend are two reasons to smile.

AAA’s Daily Fuel Gauge Report shows the follow update for Thursday, October 10, 2013 [Ref 1]:

 

National Averages          Regular       Premium

Current Average                 $3.351            $3.707

Yesterday’s Average          $3.354            $3.708

Week Ago Average            $3.376            $3.730

Month Ago Average          $3.564            $3.896

One Year Ago Average    $3.813            $4.137

My good news: I just filled up with premium at Costco for $3.37 per gallon – that’s almost the same price as the national average for regular gasoline. Can you see that big smile on my face?

When gasoline prices rise, most of us are eager to know why? However, when they fall, we are less eager to know why, but thankful that they are headed downward.

U.S. gasoline prices have continued a downward trend since Labor Day Weekend. Some of the reasons quoted by Tom Kloza, Chief Oil Analyst at GasBuddy.com are [Ref 2]:

v     As we move into the fall and winter months, refiners begin switching to cheaper blends of gasoline as clean-air rules are relaxed.

v     Gasoline demand declines in the fall after the summer driving season ends.

v     This year, refineries have been relatively problem free. There have been no hurricanes to interrupt oil platform production, and few unexpected problems at refineries like fires or pipelines breaks and ruptures have occurred.

What’s even more amazing is that I didn’t notice a major spike in gasoline prices even though crude oil prices topped $112 in late August as the U.S. was dealing with the possible threat of military action against Syria.

According to Jones Lang LaSalle [Ref 3], the U.S. has moved from a net importer to a net exporter of refined petroleum products and is trending toward overtaking Saudi Arabia as the largest oil producer in the world. With that good news and lower gas prices, I can sleep easier this Columbus Day Weekend.

References

  1. AAA’s Daily Fuel Gauge Report, http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp (last viewed on 10.10.2013)
2.      “Gas Prices Fall as Weather, Output Calm Markets”, Jonathan Fahey, Associated Press, September 27, 2013, http://abcnews.go.com/Business/wireStory/gas-prices-fall-weather-output-calm-markets-20400071 (last viewed on 10.10.2013)
3.      “United States Energy Outlook for 2013”, Jones, Lang, Lasalle, www.jll.com


Advertisements

About Vi Brown

Vi is principal and CEO of Prophecy Consulting Group, LLC, an Arizona firm that provides business and engineering services to private and public clients. Prior to establishing her consulting practice in 2001, Vi worked with Motorola, Maricopa County Government, Pacific Gas & Electric, CH2M Hill, and Procter & Gamble. As an adjunct faculty member, Vi teaches undergraduate calculus classes and graduate level environmental courses. She is also a professional speaker.

Discussion

One thought on “Lower Gas Prices Are A Bright Spot This Columbus Day Weekend

  1. What’s up to all, it’s genuinely a pleasant for me to visit this web page, it consists of useful Information.

    Like

    Posted by la bing | October 16, 2013, 1:39 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: