Posted on 12/06/2023 12:54:32 PM PST by Diana in Wisconsin
The sell-off in the oil market accelerated Wednesday, with US crude prices sinking below $70 a barrel for the first time since July.
The latest wave of selling bodes well for consumers, suggesting gas prices could fall even closer towards $3 a gallon nationally.
Gas prices bottomed out at $3.10 a gallon in late December last year just before Christmas. The national average hasn’t been below $3 since May 2021.
US crude tumbled to as low as $69.11 a barrel on Wednesday, the lowest intraday level since June 29. Oil closed at $69.38 a barrel, down 4.1% on the day. Brent crude, the international benchmark, fell 3.8% to $74.25 a barrel.
Analysts said the selloff is being driven by a confluence of factors, including concerns about soft demand in China, record-setting supply from the United States and disappointment over last week’s OPEC+ decision.
“The market has fallen off quite rapidly,” said Andy Lipow, president of consulting firm Lipow Oil Associates. “It could really be interpreted as OPEC+ losing its ability to control prices.”
Last week, OPEC+ members agreed to supply cuts but that agreement was met with skepticism because of the voluntary nature of the move.
“The OPEC+ production cuts appear to be more style than substance,” Lipow said.
All of this is welcome news for consumers. Even before Wednesday’s oil sell-off, the national average price for regular gas fell to $3.22 a gallon, according to AAA. That’s a fresh 11-month low and well below the peak in September of $3.88.
Gas prices are likely to decline another 5 to 7 cents a gallon in the next week, according to Lipow.
(Excerpt) Read more at channel3000.com ...
$2.59 next door in East Tennessee...
Here in Cincy with my Kroger gas points I paid $1.88 a gallon.I usually get at least one dollar off my fill up every month, for up to 35 gallons. In November I have $1.40 to use, so one fill up at a dollar off and a second fill up with .40 cents off. Or 2 fiil ups at .70 cents off each, my choice. Average of price is $2.88 in Cincy burbs.
Last week it dipped to $2.97 here in North Central Florida - blink and you missed it, though. Now it’s up to at least $3.17.
Oops. My wife just told me she got gas this morning for $2.88.
Texas $2.48
Hah. I’m just holding my breath. NOT 3.49 to 3.79 in Fairbanks.
$2.48 yesterday in Albuquerque.
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$2.52 in deep South Texas. We live within 15 miles of 5 large refineries. It should be half that if it weren’t for gasoline taxes and other artificial costs.
But in a town that is dependent on the oil and gas business, that is not necessarily good news. My guess is that Biden & Co. are paying off the Saudis to try and kill off the domestic oil and gas industry by destroying the market, since they can’t legislate it out of existence.
$4.05 at my fave cheap station yesterday. Nice Chinese owner came out and filled my tank. That’s at least 4 month’s worth of gas, as I do not drive on freeways anymore because my vision sucks.
Useful idea. Perhaps better if one fills up on the same day of the week at the cheapest on that day- for a better “average”.
In any case this market “turn”-— Well, let’s just say that poopy pants JoeBama WILL claim responsibility for the lowering.
EVEN as he still has not authorized FILLING the US National Strategic Oil Reserve in Louisiana. Salt caves are largely empty- prompting fears of collapse of the domes. Just saying
And if the 18cents per gallon federal tax removed by the State one is in... yes, a temporary lull. This is perhaps deliberate by the manipulators to try to create the very real fuel independence which DJT had through drilling an the approval of the Pipeline. All of which Biden (who should be quoted regularly from his “we are going to get rid of fossil fuel” speechs of 2016. This is still their lying GOAL!
Jean Kerri’ at the COP in Dubai— gonna get rid of ALL Coal fired power plants in the US!! Oh yeah- WHO is going to do that— what army...a@@wipe?
$2.39 this morning in Coryell County.
Can you mail us some? Then again you have your gov to deal with so may be that’s your bonus. 🤔
It’s been below $3 in Texas for a while.
But Biden still sucks.
Don’t you always do well in the Free Republic football pool too?
But we all know it will spike again come spring. Then begin to trail off and the chatter will be irs falling because it’s an election year.
My perspective is we are pumping record amounts of oil, yet I still hear Biden Wong issue permits and stood in the way of oil producers. The oil output has been controlled by the oil producers.
It was 2.81 here last Saturday.
Reading all these posters bragging about under $3 already. 😭
It’s like $3.89 in Fairbanks. So don’t be happy until it’s under $3 up here!
Well, like my favorite Bungals team I did well the last 2 years, actually won first place last year, this year is a different story. Think I’m in 6th place at the moment.
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