GAITHERSBURG, Md. – August 10 marks the 26th straight day that the national average for a gallon of gasoline has dropped in the United States, bringing it to $2.59 per gallon, the lowest since April 30, according to GasBuddy.
The plunge at the pump continues, unabated for the time being, as crude oil prices stand at some of their lowest levels since March, and within striking distance of their lowest levels since the Great Recession. West Texas Intermediate crude oil closed August 7 at $43.75 per barrel, a huge 28% drop over the last 48 days when WTI closed at $61.01 per barrel.
Several factors remain at play, said GasBuddy—a strong dollar has led to weakness in oil prices, exacerbated by the prospects of Iranian oil hitting global markets in the months ahead, markets that are already saturated thanks to economic slowdowns in Europe and China and continued strong oil production from the United States. Economic slowdown in China is significant as China has seen oil demand rise nearly every moment over the last decade, and stands to reverse such increases.
At the pump, the drop in crude oil prices is certainly kicking in, even in California, where refinery issues have led to disruption in the relationship between gasoline and oil prices.
Biggest weekly drops:
- California, down 15.6 cents per gallon.
- Minnesota, down 11.1 cents per gallon.
- Indiana, down 10.3 cents per gallon.
- Oklahoma, down 10.1 cents per gallon.
- Michigan, down 10.0 cents per gallon.
The national average now stands some 17.3 cents lower than a month ago and 89 cents lower than a year ago, keeping an estimated $344 million dollars a day in motorists’ wallets, GasBuddy said.
While the national average stands to continue dropping, regional volatility will likely remain a factor, primarily on the West Coast, where ExxonMobil's Torrance, Calif., refinery remains down from an explosion earlier in the year, keeping California reliant on out-of-market supply flow for keeping prices subdued.
Barring any major shakeup in the global picture and unexpected refinery problems, GasBuddy expects that the national average will continue dropping into Labor Day and stand some 10 to 15 cents lower than it stands today.
GasBuddy is a leading source for real-time local gas prices. Founded in 2000, GasBuddy developed as an initiative to provide consumers access to local, current gas prices. Through the GasBuddy.com website and the free GasBuddy mobile app, users can find and share gas prices with fellow drivers.
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