Posted on 08/27/2014 10:08:02 AM PDT by thackney
Drivers hitting the roads during the upcoming holiday weekend will likely encounter good news: the cheapest Labor Day weekend gasoline prices since 2010.
The forecast comes amid falling domestic and global crude prices, analysts at GasBuddy said. The benchmark price for U.S. crude is down nearly $9 per barrel since the Memorial Day weekend, and the the international price is down $7 in the same period.
A downward trend in gasoline prices began in July and will likely continue through autumn, the gasoline price monitors said.
Interestingly, the downward trend in crude comes despite several global conflicts in and around regions that are major global energy producers. Those conflicts including tension between Ukraine and Russia, fighting between Israel and Hamas and the growing influence of Islamic militants in Syria and Iraq.
Tom Kloza, GasBuddy’s chief oil analyst, predicted that even more significant gasoline price declines could come in late September, when much of the country is expected to experience regular gasoline prices below $3.25. Some stations could even reduce prices below $3 per gallon.
Texas is among 10 states likely to see average gasoline prices below $3.25 per gallon over the holiday weekend.
In the Houston metro area Wednesday morning, gasoline prices averaged $3.249 per gallon. That’s down from a peak this year of $3.493 per gallon in late June.
GasBuddy also forecast that U.S. demand for gasoline will likely be about 382 million gallons per day over the weekend — down about 5.2 percent from pre-recession peaks in 2006 and 2007.
Nationally, gasoline prices thus far in August have averaged $3.458. That’s $0.13 per gallon lower than the July average.
The most expensive Labor Day gasoline prices in the U.S. occurred in 2012, when gasoline prices averaged more than $3.83 per gallon.
I believe crude was 107+ less than 60 days ago, so it is now down $14+ a barrel. Gas should be under 3 dollars, heating oil should be under 2.50, but neither is the case.
It is not a linear relationship. Even if the price of crude were to go to 0 there would still be significant cost to refine it.
I've no idea on the subject; I didn't even stay at a Holiday Inn last night. But, it is the season for such things.
We'll know if I'm right, if there's a significant drop in a few more weeks (after inventories are built up). Not that it helps at all.
Distillates (mostly heating oil and diesel) typically hit a peak in early fall. We are a bit low this year.
Lets see a graph of gas/diesel prices as they relate to election cycles. I bet that would be interesting.
Weekly U.S. All Grades All Formulations Retail Gasoline Prices
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPM0_PTE_NUS_DPG&f=W
Weekly U.S. No 2 Diesel Retail Prices
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMD_EPD2D_PTE_NUS_DPG&f=W
I don’t think you’ll find what you expect. Far too many global events effect the price of oil.
Filled up yesterday in Dallas $3.09. Small convenience store
Shamrock on Gus Thomasson one block N of Ferguson. Cash only,
limit $40.
It’s low because no one has any money to go anywhere or do anything.
Oh that’s good. Maybe the people can eat some of that gasofuel since food prices are so outrageous.
Even at $3 per gallon, gas is still 50 percent more expensive than it was when that evil oil man, George Bush, left office.
Do you miss the economy from that moment in time as well?
Holding steady at $3.98 all summer long,here.
Will probably top $4 for Labor day.
I guess I should be happy with the $3.49 I paid this morning in SW PA.
Easy to make a price graph look rosy when you do 5 cent decrements.
One is priced in barrels, the other in gallons.
The percent range of both scales is the same.
3.42 divided by 93 equals 3.97 divided by 107.93
Well of course it’s cheap for Labor Day. He wants everyone in a good mood when he announces that he’s going to be letting in more illegal immigrant “children” for us to support
If we have another cold winter like last year what do you think will happen to the price of HO futures? Which expiry will have the biggest reaction?
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