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According to AAA, gas prices continue to plummet, with the previous week marking the largest weekly decline since early August.
GasBuddy now predicts that prices will continue to decline and the national average will be below $3 per gallon by Christmas.
What Happened: In the previous week, the national average pump price for a gallon of gas decreased by 12 cents to settle at an average of $3.44. On worries about global economic slowdowns, the price of oil dipped in the interim.
“Gas prices are dropping nationwide, with some of the largest decreases happening on the West Coast,” said AAA’s Andrew Gross. “But the West also has the farthest to fall because its prices are so elevated. For instance, California is still $1.50 higher than the national average.”
The Bears Are Making A Run On Oil: Patrick De Haan, head of petroleum analysis at GasBuddy, claims that the bears are in full control of the oil markets.
Prices are continuing to be heavily pressured downward as a result of protests in China over its zero-covid policies, city shutdowns, and seasonal pressure on demand in the U.S. as the weather cools and more people shop online rather than go to malls.
“All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia’s invasion of Ukraine in February,” De Haan said.
The Energy Information Administration (EIA) reports that last week, gas demand decreased from 8.74 million to 8.33 million b/d.
Why It Matters: The total domestic gasoline stock, which now stands at 211 million bbl, increased by more than 3 million bbl. Pump prices have fallen due to rising supply and a decrease in demand. Drivers can expect pump prices to continue declining as long as demand is weak and stockpiles are increasing.
“It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump,” De Haan noted.
The top 10% of stations in the country average $4.89 per gallon, while the bottom 10% average $2.75 per gallon.
The states with the lowest average prices:
- Texas ($2.83)
- Oklahoma ($2.94)
- Arkansas ($2.99).
The states with the highest average prices:
- Hawaii ($5.14)
- California ($4.97)
- Nevada ($4.66).
Stay up to date on all things oil.
Photo via Unsplash
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Image and article originally from www.benzinga.com. Read the original article here.