Archive for the ‘low gas prices’ Tag

Michigan gas prices tumble to 10-month low

Gasoline prices in Michigan tumbled to their lowest point in about 10 months, and analysts expect prices to keep falling.

The average price of an unleaded gallon of gasoline fell to $3.27, down 13 cents from a week ago, according to AAA.

In metro Detroit, it was a similar story. The average price dropped 10 cents to $3.31 per gallon.

“Decreased demand, relatively lower crude prices and the cost savings associated with producing winter-blend fuel will likely keep downward pressure on the price for retail gasoline,” AAA Michigan said in a statement. “Barring any major disruptions in supply, drivers are expected to see some of the lowest autumn prices since 2010.”

Tom Kloza, chief oil analyst of GasBuddy.com, said prices are heading below the $3 mark.

“We’re really looking at wholesale prices that point to not just lower, but they’re dramatically lower,” Kloza said in an interview. “It’s coming fairly soon.”

In fact, stations in Greenville and Ionia have already reduced prices to below the $3 mark.

The lowest average price for a Michigan region is $3.14 in the Grand Rapids-Muskegon-Holland region. Marquette has the highest price at $3.49.

More than a dozen gas stations in metro Detroit are charging $3.07 or less, though most of those prices are cash only, according to GasBuddy.com.

Kloza said a confluence of factors are driving prices down.

The price of crude oil has been falling, hitting the $90 mark, and Bloomberg reported Thursday that betting on the future price of oil hit a 17-month low last week.

Refineries in the Midwest have also ended maintenance initiatives in recent weeks, increasing supplies and lowering prices further.

Political turmoil in the Middle East has had little effect on gas prices, economists noted.

“Geopolitical events remain front of mind for market watchers, but in recent months have not translated into upward pressure on global oil markets,” AAA said.

Kloza said the price of crude oil has fallen despite ISIS violence in Iraq and Syria, indicating that the market is not concerned that continued fighting will disrupt the flow of oil.

Still, he cautioned that $3 gasoline isn’t necessarily here to stay.

“I don’t think that becomes the new normal,” he said. “I do think that becomes a level that people will get used to in the offseason.”

Read more at: http://www.freep.com/story/money/business/michigan/2014/10/06/gasoline-prices-metro-detroit/16796443/

Gasoline prices drop closer to $3 and could keep falling

Remember $3 gas? Well the price is headed down and might get back to that level again after more than three years.

The average price for a gallon of gasoline in the United States fell 6.4 cents in the last two weeks, as crude oil declined and refiners passed on the difference to motorists.

Some industry experts believe the price could keep falling, even below $3 per gallon for the first time in three years.

According to the latest Lundberg survey, the average price was about 31 cents lower than a year ago, based on the Sept. 20 survey of some 2,500 retail stations in the 48 contiguous states.

Trilby Lundberg, survey editor, said the rise came alongside a decline in the price of crude oil. Crude has fallen as Libya has produced more and there have been signs of diplomatic progress regarding Syria and Iran.

“California did buck the trend because of some recent hiccups in the California refining capacity affecting the West,” Lundberg said. “Prices rose at the pump about 16 cents in California, but the spike has already died as those glitches have already been resolved.”

Charleston, South Carolina, had the cheapest gasoline in the survey at $3.14 per gallon, while drivers in San Francisco, paid the most at $4.01 per gallon.

According to another survey, by the American Automobile Association, pump prices are in their usual September decent as demand weakens and supplies increase. But the national average for a gallon of regular unleaded remains well above $3 for the 1,007th day in a row, it said.

“It’s normal for prices to fall in September,” said Mark Jenkins, AAA spokesman. “The summer driving season is over, demand is down, and refineries are switching to the cheaper winter-blend gasoline.”

“Prices could continue to fall another 5 to 10 cents before the end of the month,” Jenkins said. “But it’s unlikely.”

GasBuddy.com, which monitors prices across the United States, also forecast cheaper prices to come.

GasBuddy’s chief oil analyst Tom Kloza predicts that the fall will see slow but steady attrition in retail gas numbers, thanks to record high U.S. refining rates and consumer demand that will at best match 2012 levels. “Supplies are adequate, and indeed gasoline now typically sells for just a few dollars more than raw crude costs. They’ll go below $3.00 anytime soon.”

As read on: http://www.nbcnews.com/business/gasoline-prices-drop-closer-3-could-keep-falling-4B11232610