November 22, 2024

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Why gas prices are falling as the US reaches its lowest level in 2023

Why gas prices are falling as the US reaches its lowest level in 2023


Find out which states saw the biggest declines before the holidays

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National average price for A gallon of gas Declining in the United States where the national average on Tuesday was just $ 3,137, according to AAA.

This amount is 9 cents lower than last week’s average making this week’s prices the lowest point of the entire year. The decline comes as the cost of oil struggles to stay above $70 per barrel AAA report Published last week. At about the same time, OPEC+ It announced voluntary production cuts of about two million barrels per day.

“Historically, crude oil tends to fall about 30% from late September to early winter as gasoline prices decline,” AAA spokesman Andrew Gross said in the Dec. 7 report. “More than half of the fuel locations in the United States have gasoline less than that.” $3 per gallon. By the end of the year, the national average may fall to that low level as well.

Experts expect the downward trend to continue in the United States due to the expected reduction in gas consumption by 7% this winter Warmer winter brought by El Niño Reduces heat demand.

World prices are steadily declining due to rising production

Gas prices also decreased globally due to the increase in gas production despite the decrease in demand for it.

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OPEC+ announced that it will reduce oil supplies during the first quarter of 2024 to support oil prices. However, portfolio investors remain skeptical about OPEC+ countries making further cuts to boost prices, according to Business Insider. Reuters.

Energy research firm FGE expects OPEC+ to tighten its grip on the market next year and increase production in the second half of 2024. From the inside mentioned.

Which states have the lowest gas prices?

According to AAAThese states have the cheapest average gas prices as of Tuesday, December 12:

  • Texas ($2.60)
  • Mississippi ($2.70)
  • Oklahoma ($2.68)
  • Missouri ($2.70)
  • Louisiana ($2.71)
  • Arkansas ($2.72)
  • KS ($2.79)
  • Alabama ($2.79)
  • Tennessee ($2.79)
  • Ohio ($2.80)

Which states have the highest gas prices?

According to AAAThe states with the highest average gas prices per regular gallon are, as of Tuesday, December 12:

  • California ($4.70)
  • Hawaii ($4.70)
  • Washington ($4,260)
  • Nevada ($4,020)
  • Oregon ($3.99)
  • Alaska ($3.81)
  • Pennsylvania ($3.49)
  • New York ($3.47)
  • Idaho ($3.43)
  • Fairmont ($3.41)

Which countries saw the largest declines?

According to AAAStates that saw the largest decline in gas prices as of Thursday, December 7:

  • Colorado (−12 cents)
  • Utah (−11 cents)
  • Idaho (−11 cents)
  • California (−10 cents)
  • Florida (−10 cents)
  • Indiana (−10 cents)
  • New Mexico (−9 cents)
  • Arizona (−8 cents)
  • Kentucky (−8 cents)
  • Nevada (−8 cents)

Contributing: Juan Carlos Castillo, USA TODAY Network