With so many events – most recently the challenges of the Ebola virus – competing with media viewers and listeners here in the U.S. and globally, there has been little discussion on some good news: falling gasoline prices. GasBuddy.com reports today’s average price for regular gasoline in the U.S. is $3.216, and prices here in Arizona are a few cents cheaper at $3.129.
My last post on gasoline prices, Gas Price Check: Production Is Up For U.S. Oil Refineries on July 31st of this year, found the average price for regular gasoline at $3.511 per gallon.
So today’s prices are about 30¢ cheaper than they were almost 2.5 months ago. It gets even better! Using weekly data from the U.S. Energy Information Administration (EIA) for 2014, a graph of regular (all formulations) retail gasoline prices was compiled and are shown in the chart above.
Usually, I find myself explaining why gasoline prices are rising. They are heading downward, and even though I don’t have definitive answers as to “why”, I just want to savor this good news. We have not seen any major disruptions to the gasoline supply due to hurricanes, tornadoes, or other weather related conditions. There have been no significant broken pipelines or unscheduled refinery shutdowns this year. Even the U.S. air strikes in Iraq that began in late August have had little if any impact on crude oil prices.
Add to the above global crude prices are about $25 per barrel below their spring levels. Include a decrease in demand for gasoline coupled with a return to cheaper winter blends, an increase in U.S. oil production, and the continuing shale oil boom, and Voila! You have smiling customers.
If this good news continues, we may all be doing our individual happy dances on Thanksgiving Day!
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