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The national average price per gallon of gasoline at American pumps is now 6.8 cents lower than a year ago, with price drops hitting their 13th week in a row and now averaging $3.03 according to GasBuddy.
The national average has shed 26.9 cents per gallon from a month ago.
“As the nation’s average price of gasoline has fallen for the 13th straight week, we’re on the cusp of potentially seeing a $2.99 per gallon average for the first time in years, most welcome just in time for the Christmas holiday,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan also warns that the declines could end soon with oil prices rebounding.
In terms of diesel, prices at the pump dropped to below $4 per gallon for the first time since July, which De Haan heralds as “very welcome news for the economy as nearly all goods are impacted by the price of diesel”. Plunging gasoline prices follow seven weeks of oil price declines that rounded off last week with a rebound in the aftermath of the Federal Reserve’s less hawkish meeting that left interest rates unchanged and suggested the potential for three rate cuts in 2024.
The Fed’s relaxing stance, in turn, suggests more room for oil demand growth optimism in the New Year.
On Monday at 11:13 a.m. ET, Brent crude was trading at $78.62, up 2.70% on the day, while West Texas Intermediate (WTI) was trading at $73.41, up 2.77%.
U.S. retail gasoline demand was up 2% for the week ending December 16, according to GasBuddy, at 8.533 million barrels per day.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com