CAMARILLO, Calif. --Refiners, retailers and consumers all got a piece of the action as crude oil prices fell further in the past two weeks, according to the most recent Lundberg Survey of approximately 2,500 U.S. gas stations. Consumers benefited as the U.S. average retail price of regular grade dropped another 12.35 cents, to $2.7181 per gallon. Refiners and retailers benefited in some margin expansions.
A whole dollar has been axed off the retail price since it peaked at $3.7225 seven months ago. This was thanks to the oil price plunge, resulting from weak world oil demand growth colliding with strong world oil output, especially of U.S. shale oil. The U.S. dollar strengthening has also contributed to lower oil prices.
OPEC's November 27 decision to leave its quota unchanged was not a fundamental input, but did add some impetus to the months-long oil price decline.
Refiner margin recovered slightly since November 19, as refiners cut wholesale gasoline prices nearly as much as oil prices fell. Retail margin, already an attractive 22.47 cents on average two weeks ago, expanded nearly seven cents to a sweet 29.22 cents. Unless oil bounces back up vigorously, the retail price may decline a few more pennies on average as retailers may continue passing through wholesale price cuts.
Camarillo, Calif.-based Lundberg Survey Inc. is an independent market research company specializing in the U.S. petroleum marketing and related industries.
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