US gas prices fall to lowest in more than 6 years: Survey

20 Jan 2016 | Author: | No comments yet »

AAA Michigan: Gas Prices Fall 7 Cents In Past Week To $1.83.

The Dearborn-based auto club says the average price for self-serve regular unleaded gasoline was about $1.83 per gallon on Sunday. The average gasoline price nationwide fell below $2 a gallon Saturday for the first time since 2009, when the nation’s economy was at its nadir after the financial crash, according to Gasbuddy.com.

Low oil prices tied to overproduction and to lower seasonal demand are “the main catalyst” for the decline, said Patrick DeHaan, a senior petroleum analyst at GasBuddy, in a phone interview. “America is the world’s largest oil consumer, and in the winter months demand is reduced,” he said. The website says the national average could bottom out at $1.85 before rising in the spring as demand rises and refineries shift to federally required summer gasoline blends.

In the Lower 48 states, the highest average price of regular gasoline is in Los Angeles, at $2.71, while Tulsa, Oklahoma has the lowest, at $1.72, according to Lundberg. US refineries produced 9.83 million barrels a day of the motor fuel in November, 2.3 per cent higher than a year earlier, the American Petroleum Institute said Thursday.

Americans have saved about $100 billion on fuel this year, which comes to more than $350 a person, according to Michael Green, a spokesman in Washington for AAA. The drop in gasoline prices has coincided with an increase in demand, which rose to the highest level since August last week, the Energy Information Administration said Wednesday. “It’s been a long time since we’ve seen a combination of low prices at the pump and a healthy economy,” DeHaan observed. “The last time that occurred was back in 2005.”

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