• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Alt Text

Hurricane Irma’s Wrath Weighs On Natural Gas

Hurricane Irma has left some…

Alt Text

Will Low Oil Prices End Saudi Arabia’s Gas Subsidies?

Feeling the fiscal pressure from…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Lower Fuel Prices not Enough for U.S. Travelers

Lower Fuel Prices not Enough for U.S. Travelers

Some retail service stations in the United States have already posted prices below the elusive $3 mark this year and prices could dip even further before the New Year. U.S. motor club AAA said prices are already at lows not seen since 2010, leaving mid-summer fuel-pump panic long forgotten in the minds of most American commuters. Meanwhile, the cost of living in the United States declined in October for the first time in six months. AAA said, however, it expects fewer commuters will hit the roads this Thanksgiving because they're still not convinced of the recovery.

As of Wednesday, four states – Arkansas, Kansas, Missouri and Oklahoma – reported a state average price for a gallon of regular unleaded gasoline below $3 per gallon. The national average Wednesday was $3.21, which is a few cents more expensive than in recent weeks, but still 20 cents cheaper than the same time last year. Still, however it's been well over three years since the national average has been below the $3 mark, the longest streak on record.

Related article: If Peak Oil is Approaching why is Gasoline so Cheap?

National security concerns in the Middle East and North America caused oil prices to flirt with $120 per barrel in early 2013. Refinery issues in the Midwest, meanwhile, pushed gasoline prices above the $4 per gallon mark by the middle of the summer. In its short-term market report published last week, however, the U.S. Energy Information Administration said it expects retail fuel prices to average $3.24 per gallon during the fourth quarter. That's 10 cents cheaper than it predicted in its October report.

For stock indices, the S&P 500 broke new ground this week when it topped 1,800 points and is up more than 30 percent for the year while the Dow Jones Industrial Average itself is up 25 percent for the year.  Fears of inflation, meanwhile, are dwindling as the consumer-price index, which reflects prices for everything from energy to new clothes, dropped 0.1 percent. That means, in general, that it cost less to get by in the United States last month for the first time since April, when retail gasoline prices averaged $3.52 per gallon.

AAA said the national average price peaked at $3.79 in February. After September, refiners in the United States can switch to a winter blend of gasoline, which is cheaper to manufacture because of fewer environmental mandates. Economic data out this week show energy costs decreased 1.7 percent from last month. Brent futures, meanwhile, fell on word that not only was oil was getting out of Libya again but multilateral nuclear negotiations with Iran were moving ahead with a relative sense of optimism. There's every indication the average U.S. consumer should have a little extra spending cash this holiday season. Lower gasoline prices and an improving economic outlook, however, isn't enough to convince American consumers to hit the road for Thanksgiving, AAA says.

Related article: Why Gasoline Prices are Heading Lower

"While the economy continues to improve, the sluggish pace of the recovery is creating uncertainty in the minds of some consumers, and therefore AAA is projecting a slight decline in the number of Thanksgiving travelers this year," AAA Chief Operating Officer Marshall Doney said.

By. Daniel J. Graeber of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News