Gasoline Prices Continue to Fall
The average price for a gallon of gasoline in the US reached $3.29/gallon on Sunday. That’s $0.15/gallon less than a month ago, even though crude oil prices have remained right around $100/barrel. “The deep rate of unemployment has sent demand…
The average price for a gallon of gasoline in the US reached $3.29/gallon on Sunday. That’s $0.15/gallon less than a month ago, even though crude oil prices have remained right around $100/barrel.
“The deep rate of unemployment has sent demand down,” Trilby Lundberg, editor of the Lundberg survey, told Reuters. “It is the work commute that creates most of our gasoline demand.”
Last week’s drop in the unemployment rate to 8.6% is not likely to make a very large difference in demand for gasoline. US demand for gasoline has fallen from about 9.6 million barrels/day several years ago to about 8.8 million barrels/day currently. The US is even a net exporter of gasoline now.
In the continental US, the lowest gasoline price is about $2.96/gallon in New Mexico, according to gasbuddy.com. The highest price is in California, where a gallon of regular gasoline costs $3.63. A year ago, the US average price for a gallon of regular gasoline was about $2.94.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
