It is December 30, 2016, the eve of New Year’s Eve! Today’s average price per gallon for regular gasoline in the U.S. is $2.324. As we look forward to a new year, this post provides a quick glance at gas prices for CY2016.
The chart below provides a better visual of where retail gas prices have been over the past 12 months (Source: GasBuddy.com):
Assuming no other distractions or hiccups in the global crude oil supply or domestic refining operations, I anticipate a drop-off in gasoline prices in the coming weeks of 2017 as motorists return to normal driving habits following the year-end holiday season. With spring comes warmer weather and a shift in refining operations from winter to summer blends, and an anticipated rise in prices at the pump.
So far, the impact of OPEC’s recent agreement to curtail crude oil production on September 28, 2016, has had limited impacts on pump prices the last quarter of this year. As a reminder, the cartel members agreed to reduce output by about 1.2 million barrels a day beginning January 1, 2017. This fulfills a plan sketched out in Algiers to cut its production to 32.5 million barrels (see Say It Ain’t So? OPEC Reaches Agreement to Curtail Production).
While most of you aren’t complaining about the current prices at the pump, today’s average represents an increase of 32 ¢ over last year this time. All things considered, we could be paying a lot more.
That said, happy motoring and happy New Year 2017!!!