Gasoline prices in the United States are slowly falling after a Thanksgiving high, according to emerging data on the fuel’s price points. But drivers should enjoy the current falling prices—because they won’t be here for long.
On Monday, the national gallon of gasoline averaged $2.465, down 3.5 cents from the previous Monday. Demand for gasoline dropped after Thanksgiving as families returned to their homes, ending a yearly road-trip season—kicking off the season of lowered demand for the fuel.
Still, GasBuddy’s pre-Thanksgiving report pegs gas prices at their highest average since 2014, the year oil prices crashed from their highs of over $100 per barrel—so the fall in prices won’t be as much as many are accustomed to.
“With OPEC deciding last week to extend last year’s agreement on oil production cuts, the future for gasoline prices isn’t as rosy,” said Patrick DeHaan from Gasbuddy.com.
“While the short term may feature more modest price decreases is many areas, as we set our sights on the months ahead, 2018 is starting to look ominous as a result of OPEC’s extension. U.S. oil inventories are already 100 million barrels lower than where they were last year as a result of the belt tightening, leading 2017’s yearly average gas price to close out at the highest since 2014. Motorists should enjoy the falling prices now because it’s likely that prices may again rise approaching the New Year as oil prices continue to show strength.”
States in the upper-Midwest saw the biggest drop in gallon prices – up to ten cents in some places.
Oil prices have been on this rise this year as OPEC reduces output by 1.2 million barrels per day in order to close the supply glut in international markets. OPEC’s compliance to the cuts has remained above 90 percent through the life of the pact, encouraging market fundamentals to recover over the course of 11 months. Last week, the bloc decided to extend the cuts through the end of 2018, guaranteeing price growth as long as members and their Non-OPEC allies continue compliance.
By Zainab Calcuttawala for Oilprice.com
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