Gas prices in ME dip closer to $2 a gallon

It’s the seventh straight week that all ten metro areas of MI had average prices below $2, and were below the national average.

For now, gas prices are still hovering near the $2 a gallon mark in most places around the country.

“Both Tucson and Flagstaff now hold the low and high state fuel averages, respectively, whereas, Missouri and California hold the lowest and highest average prices for the lower 48 states, respectively”, said Gorman.

Local gas prices now are one cent higher than the statewide average of $1.88 and eight cents below the national average of $1.97.

The cost of producing oil from shale deposits, particularly in the United States, is greater in some cases than what it can be sold for. Los Angeles prices peaked in mid-July at $4.31 per gallon following additional unplanned refinery outages, according to EIA. There is also “a supply glut” guaranteeing an oversupply of crude oil thanks in turn to Saudi Arabia’s decision to keep oil exports high, which in turn has dissolved the OPEC cartel.

Both crude oil benchmarks, West Texas Intermediate and Brent, closed out the year posting yearly losses of almost 30 percent, largely attributed to global supply continuing to outpace demand. It’s priced at $1.73 per gallon of regular unleaded gas, which is the same as the cheapest gas in the state last week.

Regardless of their move in coming weeks, pump prices remain at their lowest level since 2009, AAA said.

Gas prices are likely to fall even lower this week, due to the falling price of oil. “It’s pretty quick how Americans react to sustained declines in gas prices”.