Gas prices still falling as crude oil costs nosedive

The national average fell below $2 per gallon on Monday December 21st for the first time since 2009, AAA reported. Lower prices will eventually hit pumps into the New Year as oil prices drift lower thanks to weakening demand for petroleum, GasBuddy said. Prices are poised to remain depressed into next year after the Organization of Petroleum Exporting Countries refused to limit its output. AAA found self-serve regular selling for as low as $1.85 per gallon and as high as $2.19. “There has not been a better time in years for motorists to extend their trips and travel farther”. Oil is the primary cost associated with making gasoline, and every $10 decline in the cost of oil can reduce gas prices by almost 25 cents per gallon. Highest prices are in Hawaii and California, with $2.73 and $2.72, respectively.

In the Lower 48 states, the highest average price of regular gasoline is in Los Angeles, at $2.71, while Tulsa, Oklahoma has the lowest, at $1.72, according to Lundberg. Auto group AAA estimates low gas prices have saved Americans more than $115 billion so far this year, or more than $550 per licensed driver. The most common price nationwide is $1.899 per gallon.

Global oil analyst Anarita Sen says it’s not just production in the USA that’s driving crude prices down. “This will make travel more affordable for the 91.3 million Americans forecast to drive during the next two weeks”.