Gas Prices Continue To Tumble As Crude Futures Sink Further

Gas price trend for week of December 1, 2014Some Analysts Predicting Oil At $50 Per Barrel Due To Shale Boom

The price of regular unleaded gas continued its months-long tumble to settle at an average $2.78 per gallon, according to the latest weekly price survey from the U.S. Energy Information Administration. The E.I.A. report also shows diesel prices continued their price drops during the past week, with the nationwide average coming in at $3.60 per gallon. On average, American drivers are paying about 93¢ per gallon less for gas than they were just six months ago, which translates to $13.95 of savings for every fill up of a 15-gallon fuel tank.

Regional Prices Continue Falling At Different Rates

Gas prices around the country still vary widely by region, however, with the West Coast continuing to tally the highest prices in the country. Even so, for drivers from California to Washington State, the average price of $3.02 per gallon is welcome relief after a summer in which prices were regularly well above the $4.00 mark. The lowest prices in the country continue to be found in the Gulf Coast states, where the average price is now about $2.53 per gallon, but some stations near Austin had gas for less than $2.50.

Crude Oil Leading The Way To Lower Prices

Meanwhile, the price of fuel is expected to keep falling as it follows the trends in crude oil futures. Domestic crude, West Texas Intermediate, is now less than $70 per barrel to its lowest point in over five years. As WTI goes, so goes Brent Light Sweet Crude, which is also trading just above $70 these days. The reason is, of course, the U.S. shale boom, which has produced a much larger crude oil surplus than originally expected by both drillers and refineries.

Michael Yoshikami, founder of Destination Wealth Management, told CNBC Tuesday it was not unrealistic to think domestic crude could fall as low as $50 per barrel. Another oil market analyst, Olivier Jakob of Petromatrix in Zurich, said Brent could still trade in the $60-$70 range, like WTI does currently, particularly if the U.S. supply remains high and overseas producers continue their high level of output.

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Gas Prices Continue Free Fall Going Into Thanksgiving

Prices Plunge Another Seven Cents In One Week

Gas price trend for week of November 24, 2014Even as freak snowstorms buffet many parts of the nation, the supply of gas, coupled with the multi-year low prices of crude oil futures, have continued to push the retail price of gas to fresh lows for 2014. The nation’s average price of gas fell over 7¢ per gallon during the past week to settle at $2.82, according to the latest weekly price survey from the U.S. Energy Information Administration. In the Gulf Coast region, some drivers are enjoying what might be called “super low” gas prices, because premium gas is below $3.00, at some stations, a new threshold not commonly seen until the current spate of price declines. Along the broader Gulf Region, the average price of regular unleaded is the lowest in the nation at $2.59.

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Gas prices in the Gulf region, like at this station near Austin, Texas, have fallen low enough that even premium prices are below the $3.00 threshold. The average Gulf price for regular unleaded is now $2.59 per gallon, the lowest in the country. Photo: Eric Scallion.

The week-on-week declines in fuel prices extended to diesel, which fell over 3¢ per gallon in most places. Prices in the Midwest and along the West Coast, a substantial survey region, fell by more than 4¢ per gallon. The U.S. average diesel price is now $3.62, with the Lower Atlantic states enjoying the lowest cost at an average $2.44 for the region. Truckers moving across the Rocky Mountain states and the broader West Coast region will pay the highest per-gallon prices for diesel at $3.74 and $3.72 per gallon, respectively.

2014 Crude Trends Differ From 2013

The price of fuel has been going down steadily since the end of June, when the summer peak in prices brought regular unleaded gas to $3.70 across the nation. Crude prices began to decline near the end of June, both on the domestic index, West Texas Intermediate, and the overseas benchmark, Brent Light Sweet Crude.

Interestingly, the price of diesel has been going down steadily since March 10, save for a two-week bump in prices at the end of April and another two-week upward lurch at the end of June. In each case, the price of unleaded gas also spiked, reaching spring time and summer peaks, respectively. For 2013, the prices of diesel and regular unleaded gas followed each other in a close trend line, which seems to have broken just ahead of spring in 2014.

Year On Year, Gas Is Significantly Cheaper

Regardless of the crude oil trends, both diesel and regular gas are significantly cheaper than at this time last year. On average, regular unleaded gas is about 47¢ less than at this time last year, when gas prices were reaching their seasonal low. Prices across the Lower Atlantic states are nearly 60¢ per gallon less than last year.

The year-on-year spread is not as pronounced for diesel, which is about 22¢ per gallon cheaper this year than at this time in 2013. However, prices in some regions, like the Rocky Mountain and Midwestern states, are only 10¢ and 8¢ per gallon cheaper. However, prices across those regions are known to fluctuate wildly. Just three weeks ago, the YoY comparison put prices in the Rocky Mountain states at 14¢ per gallon cheaper than last year. For the Midwest, prices were actually higher year on year.

Gas Prices Likely To Remain Low For Near Term

That kind of volatility makes short-term price forecasting for those regions difficult. And forecasting crude oil prices can be equally troublesome, even in the face of ever-rising U.S. production levels. Some analysts have believe the price of crude will remain in a tight range in the mid to upper $70s of dollars per barrel. However, IG’s Chris Weston told Bloomberg News Monday he believes the price of crude has likely bottomed out or may be close, largely due to political and industrial movements in Libya and a potential move by Iran and Saudi Arabia to cut production in the coming weeks.

Year On Year Gas Savings Could Near Or Exceed $80-million

In the meantime, the price of gas remains poised to provide holiday drivers with bonus this Thanksgiving. The American Automobile Association is predicting about 41.3-million U.S. drivers will journey 50 miles or more from home this week. Applying the average year-on-year U.S. gas price savings, that means the American drivers will save, in the aggregate, about $78-million in fuel costs.

That figure is predicated on the following assumptions: A car getting an average 25 miles per gallon, with at least a 100-mile round trip that would consume four gallons. Extending the formula to include AAA’s holiday traffic projection, that translates to about a combined 185-million gallons of gas among 41.3-million drivers, multiplied by the current U.S. price average of $2.82 per gallon, versus the $3.29 price point at Thanksgiving last year.

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Gas Prices Keep Falling As Keystone XL Pipeline Debate Rages

Glut Of Oil Pushes Crude Prices Lower

Gas price trend for week of November 17, 2014The cost of a gallon of gasoline fell another nickel across the U.S. last week, this according to the latest gas price survey from the U.S. Energy Information Administration. The weekly E.I.A. survey shows the average U.S. cost for a gallon of regular unleaded is now only $2.89, with prices far lower in some regions. For the Gulf Coast, the cheap spot of the nation, a gallon of gas will only set you back $2.67, on average.

Prices continued to fall between three and six cents per gallon across every survey region in the past seven days. Even in California, where prices remained above $4.00 per gallon most of the summer, prices fell nearly 7¢ in the past week to settle at $3.15, nearly $1.00 less than just a few months ago. For many drivers, the retail price declines have been exceptionally beneficial on the wallet, the construction of the last leg of the Keystone XL pipeline has the potential to add to that benefit.

A tale of two stations? Not really. These pictures, from Google (left) and from Owen Miller (right) show how gas prices have swung wildly in the U.S. in the past two years. No price decline in recent years has been as dramatic as the one experienced since the end of June. Crude oil is down 30% and unleaded is down more than 80¢.

A tale of two stations? These pictures of a Prime Energy station in Middleborough, Massachusetts, from Google (left) and from Turnpikeinfo.com user Owen Miller (right) show how gas prices have swung wildly in the U.S. in the past two years. No price decline in recent years has been as dramatic as the one experienced since the end of June. Crude oil is down 30% and unleaded is down more than 80¢.

Crude oil prices have continued to plummet in the wake of slowing global demand and an increase in production from the United States. Furthermore, nations belonging to the OPEC cartel have been unable to influence production that would slow the decline in foreign crude prices, and as a result, both domestic and overseas crude remain at multi-year lows. West Texas Intermediate, the domestic benchmark, is at its lowest point since the start of 2009.

Analysts Say Crude Prices Will Remain Low

Meanwhile, new geopolitical risks that might otherwise push up crude prices are likely to only bump futures contracts from time to time, according to a pair of analysts who spoke to Bloomberg last week. Dan Dicker, the senior contributor to Oilprice.com, said he believes the current market will trap crude prices in a narrow range. Scott Bauer, from Trading Advantage, said he believes traders will likely sell contracts that get up to $81 per barrel and reacquire contracts when they fall to $76. As of Tuesday morning, WTI is trading under $75, while Brent Light Sweet Crude is hovering just above $78 per barrel.

Diesel Prices Falling, But Not As Quickly

The good news for the American driver also translates to good news for the American hauler. Truckers have continued to enjoy diesel price declines through the summer and into the fall. The average price of a gallon of diesel fell last week to $3.66. Although there was a slight price bump in the West Coast region, all other regions enjoyed a week-over-week price decline.

The Midwestern states, where diesel prices soared by double digits last week, watched a leveling of prices. The other region hit by last week’s power price surge was the Rocky Mountain states, where prices fell three cents this week. Overall, however, diesel prices remain anywhere from 70 to 80 cents per gallon higher than unleaded gas.

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Gas Prices Nosedive Amid Sluggish Global Demand

Prices Continue Falling, With A Glitch For Truckers

Gas price trend for week of November 10, 2014The price of a gallon of gas continued to fall through the floor during the past week, according to the latest weekly gas price survey from the U.S. Energy Information Administration. The weekly E.I.A. report shows the cost of a gallon of regular unleaded will now set you back a mere $2.94, down just over a nickel from last week, and down 77¢ since gas prices hit their peak in the last days of April and again in late June.

Crude Oil Prices Fall As Production Increases And Demand Withers

The news comes as crude oil prices continue to tank. On the international markets, Brent Light Sweet Crude was trading down again Wednesday, flirting with crossing under the $81 per barrel mark. For the domestic benchmark, West Texas Intermediate, the price is off significantly in intraday trading and was closing in on the $77 mark.

The surplus of domestic shale and sluggish demand, both overseas and in the United States, has put crude oil and, consequently, retail gas prices into a downward spiral. The E.I.A. has cut its domestic crude pricing forecast for 2015. The E.I.A. projection for the coming year is that WTI will average about $77.75 per barrel, posed to the original forecast of $94.58. The E.I.A. estimate for Brent has been cut to $83.42 from $101.67.

The E.I.A. administrator, Adam Sieminski, wrote in an email statement that the current growth in the global oil supply, even in the face of weaker consumer demand, will keep crude prices suppressed. Forecasts for U.S. domestic production project an increase in domestic crude output from 8.5-million barrels per day to over 9.4-million next year, the highest domestic crude production since 1970.

Truckers Hit With Surprise Price Hikes

Tractor trailers at a Florida's Turnpike service place.

Truckers traveling across the Midwest and Rockies will be paying far more for fuel this week than their counterparts in other regions. Prices spiked by 8¢ across the Rockies and a stunning 16¢ per gallon across the Midwest.

But the current news is unlikely to assuage concerns for truckers, many of whom have been hit with a surprise and costly price increase during the past week. The E.I.A. survey shows price spikes across the Rockies and in the Midwest contributed to a solid increase in the cost of diesel during the past week. Overall, the U.S. average diesel price is up by a nickel, exactly the opposite of the retail gasoline market.

While many regions across the eastern seaboard enjoyed price declines, a stunning 16¢ per gallon increase in prices across the Midwest, coupled with an 8¢ per gallon price hike in the Rockies, all but wiped out positive price points from other survey regions. For truckers making cross-country trips, the weekly price spike is likely to be quite costly.

Perhaps the only good news in the mix, for drivers of diesel-powered engines, is that the Midwest and Rockies generally have volatile price swings, often due to weather. That volatility is likely to drive prices back down over the next week, as crude oil stocks and production remain high.

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Gas Prices Officially Fall Below Three Bucks

Prices Slip As Crude Falls Below $80 Per Barrel

Gas price trend for week of November 3, 2014

Gas prices officially fell below the crucial $3.00 level in the latest EIA price survey. However, prices in many regions have been below that threshold for a few weeks. In some urban areas, like at the South Florida gas station pictured below, that price point is just being seen.

The U.S. average price for a gallon of gas is now officially below the $3.00 per gallon threshold, according to the latest pricing survey from the U.S. Energy Information Administration. The E.I.A. reports shows over half of all survey regions now average under that same benchmark.

The highest price for gas is still being paid on the West Coast of the U.S.; however, even in that survey district, the price of a gallon of regular unleaded is down to $3.24. Remove expensive California from the formula, and the West Coast average is, itself, only $3.13, in line with other regions where the price of gas remains above the $3.00 mark, including New England and the Rocky Mountain states.

The plunge in retail gas prices tied to the steep decline in recent weeks of the price of crude oil. Both domestic crude, West Texas Intermedia, and the overseas benchmark, Brent Light Sweet Crude, are down significantly from their early-summer highs. WTI is even trading below $80 per barrel, the first time it has been that low in 30 months, according to CNBC.

Gas prices in Oakland Park, Florida on November 2, 2014In the meantime, some hedge fund managers are calling for short-term prices to remain low and move lower. Andy Lipow of Lipow Oil Associates told CNBC earlier today he expects the average gas price in the U.S. to be $2.80 by the Thanksgiving holiday. That would certainly be great news for drivers hitting the road during that critical travel weekend. If that prediction holds true, that price point would also be 91¢ less than the peak price earlier this year. The U.S. average topped off at 3.71 at the end of April.

Diesel Prices Fall, But Not As Fast As Unleaded

Truckers and other drivers of diesel-powered vehicles are experiencing a break at the pump, too; however, the price declines for diesel have not been as steep as those for their gasoline-powered counterparts. Diesel fell only about a penny per gallon during the past week, much smaller than the six-cent decline for regular unleaded gas.

Even so, the price of gas for all vehicles, whether gasoline or diesel, is down significantly from a year ago. For regular gas, the cost of a gallon of fuel is now 27¢ less than last year; diesel is down over 23¢ from this period in 2013.

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Gas Prices Poised To Slide Below $3.00

Prices Continue Their Autumn Fall

Gas price trends for week of October 27, 2014The nationwide average price for a gallon of regular unleaded fell to $3.06 during the past week, according to the U.S. Energy Information Administration. That figure is down six cents from the previous week. As with all weekly surveys, this week’s E.I.A. report shows some regions enjoyed a larger decline, particularly the West Coast, where prices fell 10¢ per gallon to settle at a regional average of $3.32. The cheapest regional prices were found across the Gulf Coast region, once again, where the average retail cost for gas is now only $2.83 per gallon.

Part of the reason for the decline in prices is the high output of U.S. shale production and a slowing global demand. The price of crude oil futures, particularly West Texas Intermediate, has fallen dramatically since its summer highs. Price have been trading in a narrow range for days, flirting with the potential of falling below the $80 per barrel threshold.

Year Over Year, Gas Is Significantly Cheaper

That has been good news for drivers. The cost of gas has fallen so much in the past several weeks, the cost of fuel is now anywhere from 17¢ to 30¢ per gallon cheaper than at this time last year, depending on the survey region. That good news extends to truckers, too, who are also paying substantially less this year for diesel fuel.

Overall, the price of diesel has not fallen as dramatically as gas prices in recent weeks; however, the year-over-year price difference of diesel fuels is identical to the price of gasoline. For both types of fuel, the U.S. average price is 24¢ cheaper than 2013’s rate.

There are indications retail prices could push even lower, especially if crude oil prices continue their free-fall. In fact, overseas crude oil prices, which have also fallen substantially, may not have the power to reverse course with the same gusto as in previous years. The reason is a decline in the pricing power member nations of OPEC, the Organization of Petroleum Exporting Countries. The reason comes back to U.S. shale production, according to Jeff Currie of Goldman Sachs. Mr. Currie made his comments on CNBC, telling reporters that the United States has more power to influence price swings.

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Gas Prices In Free Fall As Crude Finally Levels Off

Gas Prices Fall Below $3.00 In Many Areas

Gas price trends for the week of October 20, 2014The nation’s average per-gallon gas price dropped 9-cents for the second consecutive week, according to the latest survey from the U.S. Energy Information Administration. The E.I.A. report shows the average price for a gallon of regular unleaded is now only $3.12, down 59¢ per gallon since prices peaked just before the start of summer. Based on a 15-gallon tank, the average U.S. driver is now paying almost $9.00 less per fill-up than six months ago.

In some regions of the U.S., the average price for that survey district is now less than $3.00 per gallon, such as the Gulf Coast, where prices are now, officially, averaging about $2.91 per gallon. Even on the West Coast, where prices were regularly north of the $4.00 mark during summer, the price of a gallon of gas has finally fallen below $3.50. In fact, the West Coast average gas price plunged over 11¢ during the past week to settle at $3.42.

Crude Oil Leveling Off, But Drivers Still Benefit From Previous Declines

Part of the reason for the dramatic drop in gas prices has been the market response to driver demand and the glut of oil in the United States. Shale oil production pushed U.S. domestic crude prices ever lower, even as demand around the world began to fall on a slowing economy. Then the end of the summer driving season hit, sending crude prices down to trade under $80 per barrel. While prices have rebounded this week, West Texas Intermediate, the domestic crude benchmark, is trading between $83 and $84 per barrel. That is down over $20 per barrel from WTI’s early-summer high. Prices began declining in the last days of June, but the plummet only happened in the past three weeks.

Meanwhile, the benefit for drivers has been most noticeable. Even drivers in the Midwestern United States, where price volatility plagued the summer driving season, prices have continued to fall at an ever-increasing pace. However, Ohio still suffers under the lash of retail price swings, as evidenced by a 6¢ per gallon price increase in the past week. Nonetheless, most drivers across the midwest are paying an average of only $3.03 per gallon. In Minnesota, however, the average price for all formulations of regular unleaded gas are down to $2.95 per gallon.

Urban Gas Prices Still Significantly Higher Than Highway And Rural Stations

While gas prices continue to decline in nearly all areas of the United States, city drivers are finding that retail prices remain higher in the city than in rural areas and at gas stations along turnpikes and interstate highways. Part of the reason is the lack of real estate for competition stations in inner city areas, but the pricing disparity can often be quite dramatic, almost as if to make a demonstration of market influences of supply and demand. What is more, the pricing differential does not appear confined to a single region.

For instance, during the peak summer driving season, when prices were at their highest, the cost of unleaded in inner-city Chicago was $4.28 per gallon at a BP station inside the loop, on Congress Avenue. However, just outside the city, at the Hinsdale Service Plaza on the Tri-State Tollway, the price of gas was only $3.97.

In Florida, where tourist travel brings out-of-state drivers in high volume during summer and winter, the price differential between inner-city and suburban areas is equally dramatic. Prices in Oakland Park, Florida, adjacent to Fort Lauderdale, were only $3.25 on October 12. Four days later, in nearby Fort Lauderdale, spotters for TurnpikeInfo.com found prices were still $3.49 per gallon. According to the E.I.A., Florida’s average gas price on October 20 was calculated at $3.09 per gallon.

Pictures Of Urban Versus Suburban Gas Prices

July 1, 2014: Gas prices inside The Loop in Chicago.

July 1, 2014: Gas prices inside The Loop in Chicago. Prices at this station on Congress Avenue were 32¢ higher than some areas of suburban Chicago.

July 4, 2014: Gas prices at the Hinsdale Service Plaza of the Tri-State Tollway.

July 4, 2014: Gas prices at the Hinsdale Service Plaza of the Tri-State Tollway, just outside Chicago. Prices at this station were 32¢ less than nearby, inner-city Chicago stations.

October 12, 2014: Gas prices at an Oakland Park, Florida station.

October 12, 2014: Gas prices at this Oakland Park, Florida station were 24¢ cheaper than inner city stations only a few miles away.

October 16, 2014: Gas prices in Fort Lauderdale, on busy Sunrise Boulevard, which connects to Florida's Turnpike.

October 16, 2014: Gas prices in Fort Lauderdale, on busy Sunrise Boulevard, which connects to Florida’s Turnpike. Prices at this Shell station were 24¢ higher than another Shell station only three miles away, in Oakland Park.

Truckers Catching Big Break As Diesel Prices Slip Downward

Meanwhile, the suburban and rural gas pricing is likely an issue that favors the nation’s truckers, who are usually between cities on long hauls. The E.I.A. survey shows the price of diesel fuel declined 4¢ per gallon during the past week to $3.66, although prices remain close to the $4.00 mark across the West Coast, particularly California.

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As Crude Oil Tanks, Retail Gas Prices Fall Through The Floor

Lowest Crude Prices In Nearly 30 Months Brings Relief To Drivers

Gas price trend for week of October 13, 2014The price of a gallon of gas hit a new low for the season as the national average cost fell to only $3.21, according to the latest weekly survey from the U.S. Energy Information Administration. The EIA report shows gas prices at the national level fell more than 9¢ per gallon over the past week, although some regions experienced a larger decline. For the Gulf Coast region, prices have fallen so low that some stations are selling fuel for less than $3.00 per gallon.

Region by region, the news for drivers is very good. Even on the West Coast, where prices are traditionally the highest in the country, the price of regular unleaded has fallen to $3.54 per gallon, and while that number is much higher than other survey regions, it is more than 50¢ per gallon less than the peak price, which was recorded at $4.07 per gallon in the April 28, 2014 survey. For most drivers across the U.S., the price of gas ranges between $3.20 and $3.35 per gallon.

Gas station in Pflugerville, Texas

Gas prices at this station north of Austin, Texas, underscore just how much retail prices have fallen since the summer peak. Photo: Kristen Scallion.

The declining cost of retail gas is due to a decline in global demand, a slowdown in U.S. demand with the end of summer driving, and higher shale oil production in the U.S. These factors, among others, have pushed domestic crude oil prices to their lowest levels since the end of June 2012; West Texas Intermediate (WTI) was flirting with the $80 per barrel level early Tuesday, down about $25 per barrel from the summer peak. Overseas, Brent Light Sweet Crude is also at a low point. In fact, the spread between Brent and WTI was less than $3 dollars Tuesday. The difference between the two benchmark futures indices has been much greater in recent years, sometimes more than $25 per barrel, according to MarketRealist.com.

Urban Gas Prices Higher Than Regional Levels

While all drivers are catching a price break at the pump, drivers in many cities are not getting quite the break their rural counterparts are enjoying. Overall, prices in urban areas are down, but drivers typically pay as much as 35¢ per gallon more at some city gas stations than they would if they drove just a few miles out of town. For instance, prices in the Lower Atlantic states are current averaging $3.15 per gallon, but prices in the urban core of Fort Lauderdale, the home of Turnpike Information Company, are as high as $3.49 per gallon. In adjacent Oakland Park, Florida, which shares a border with its larger neighbor, prices are only $3.25 per gallon for regular unleaded, a 24¢ difference.

Truckers Getting A Price Break, But Not As Dramatic

The price of diesel fuel is coming down, but not as quickly as the cost of gasoline. The price of retail diesel fell by about 4¢ per gallon during the past week, brining the national average price of diesel down to $3.70. Prices fell the most across the West Coast and the Central Atlantic states. California has the most expensive diesel in the U.S., with prices still near $4.00 per gallon; the Midwest and Gulf Coast regions have the lowest diesel prices at the moment, with averages in each region currently at $3.64 per gallon.

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Gas Prices Move Down After Staying Flat For A Week

Prices Drop Substantially With Crude Oil As Inventories Increase

Gas price trend for week of October 6, 2014An increase in domestic crude oil inventories, lower consumer demand and a slowing global economy all have contributed to a new slate of drops in crude oil prices, this as the September declines in crude are now beginning to be noticed at the pump. The average U.S. price for a gallon of regular unleaded fell a nickel last week, bringing the price of gas to $3.30, according to the latest survey from the U.S. Energy Information Administration. Last week, prices at the national level were largely unchanged, according to the survey.

Prices at the retail level have been following declines in crude oil futures. West Texas Intermediate, the domestic crude, is down more than $15 from its summer high. It was trading just under $89 per barrel on the New York Mercantile Exchange midday Tuesday. The overseas crude benchmark, Brent Light Sweet Crude, is trading under $93 per barrel, a price point more common for WTI.

Part of the reason for the decline is a rise in domestic crude inventories. A Bloomberg survey last week found stocks had increase by 2-million barrels, adding inventory amid a slowdown in consumer demand. What is more, the International Monetary Fund announced Tuesday it had reduced its global growth forecast for 2015.

Regional Volatility Adds To District And Nationwide Price Movement

This week’s gas price plunge was much larger for the Midwest Region, which is known to have greater pricing volatility than other survey districts. Prices from Wisconsin to Ohio dropped an average of 10-cents per gallon during the past week, with cities like Chicago and Cleveland enjoying average declines of 9¢ and 10¢, respectively. The Lower Atlantic states had the lowest price decline of all the regions, at just one penny per gallon.

Meanwhile, the Gulf Coast continues to enjoy the lowest prices in the nation. With the cost of gas dipping about a nickel per gallon in most spots, the average price from Texas to Alabama is about $3.11 per gallon. The West Coast remains the most expensive place to gas up, with average prices for regular unleaded gas going for about $3.61.

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Price Of Gas Plunges For Third Consecutive Week

Gas Price Declines Nearing Three Month Mark

Gas price trends for week of September 22, 2014The average price of gas in the U.S. dropped over 5¢ per gallon last week, virtually repeating the price drop from the previous week. That brings the overall decline in gas prices over the past 14 days to 11¢. Currently, the average gas price is $3.35 per gallon, according to the latest survey from the Energy Information Administration.

Except for an interruption in price declines the week of September 1, the current run of gas-price declines is nearly three months long. The average price of fuel for U.S. has plunged by 35¢ per gallon since the beginning of July, when prices were at their summer peak of $3.70 per gallon.

For drivers across the U.S., regional gas prices fell virtually in lockstep with the previous week’s declines. The Midwest, for instance, experienced a second week of price dips of 8¢ per gallon. The average price of gas across the nation’s mid-section is now $3.28 per gallon, making the third U.S. region to have gas prices break below the $3.30 mark. The Lower Atlantic states eased through that barrier last week with prices at $3.29 per gallon. This week, drivers in the Lower Atlantic states are paying an average of $3.26 per gallon, although prices in many urban centers are much higher. Meanwhile, the low spot for gasoline in the U.S. remains the Gulf Coast, where prices dropped to $3.13 per gallon this week.

Gas Prices Following Crude Futures

The cost of gas has been following the downward trend in crude oil prices. West Texas Intermediate, the domestic crude benchmark, was trading near $105 per barrel in mid-summer. Currently, WTI is trading just under $92 per barrel, and intraday trades have flirted with the $90 mark a number of times during the past week. Brent Light Sweet Crude, the overseas benchmark, was trading near $113 per barrel as recently as three months ago. Brent was trading just under $97 per barrel at 1 p.m. Tuesday, the lowest the futures index has been in the past 15 months.

Truckers Enjoying Break At The Pump

The good news for drivers of regular cars extends to drivers of America’s tractor-trailer rigs. Truckers are paying less for diesel this week than last, with the average price of a gallon of diesel down to $3.78 per gallon. As with last week, the year-over-year prices are off more than 17¢ per gallon.

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