Gas Prices Plunge As BP Refinery Goes Back Online

31 Aug 2015 | Author: | No comments yet »

After BP Whiting fix, Grand Rapids gas prices still fall.

CHICAGO (CBS) — Repairs at BP’s Whiting, Ind., refinery sent gasoline prices plunging last week across Chicago and nationwide, the biggest single-week drop this year. “Prices moved lower in all but one state, Utah, with plunges at the pump throughout the Great Lakes as a result of BP’s Whiting, Indiana refinery coming back online. “The national average now stands at its lowest point since April, a fitting way to close out the summer driving season with Labor Day approaching.” CONCORD, N.H. (AP) — In contrast to the national picture, gas prices in New Hampshire have fallen 8.4 cents per gallon in the past week, to an average of $2.35.GRAND RAPIDS, MI — Gas prices have kept up recent declines and should continue to fall following the Midwest’s largest oil refinery’s return to service.

Average gasoline prices have seen their biggest weekly drop of the year, according to fuel price information service GasBuddy.com, which reports the national average fell nearly 13 cents to $2.47 a gallon. It’s been about one week since BP Whiting, Ind., facility resumed normal operations after its crude oil distillation unit unexpectedly shut down earlier this month.

Oil is now selling for below $40 a gallon, well under the $104 level it reached in 2013.The World Bank Commodity Forecast projects that while prices will slowly rise, they will remain under $100 a barrel through 2025. Crude oil, which accounts for roughly two-thirds the price of gasoline, has lost about a quarter of its value since June on fears that an economic slowdown in China — a big consumer of oil — and loosening sanctions on Iran — a potentially big exporter of oil — could prolong low prices. In addition, BP’s Whiting refinery in the Midwest- which went down unexpectedly a few weeks ago- has returned to service, alleviating concerns of a supply shortage and ushering in lower prices in response. While oil prices rallied late last week, I don’t yet expect it to impact pump prices, as they still have some catching up to do with the drop in crude oil prices.

Other North Jersey stations had some of the highest prices on the site – including $2.99 at a Lukoil in Wyckoff and $2.89 at a Lukoil in Englewood Cliffs. Shellie Moody of Paterson was happy Friday to find gas at a Delta station on Main Street in Ramsey – where Parmjit Singh pumped for her – going for $1.85 a gallon. Prices in half the nation’s states stand over $1.00 a gallon lower than a year ago, while California sees the smallest break, down just 49 cents versus a year ago. GasBuddy projects that by Christmas, as many as half of the nation’s gas stations will charge less than $2.00 a gallon, while some 5,000 stations are already at that level (5.0%) today.

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