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 ...
$2.71-$2.89 in my part of Alabama. $2.65 at Sam’s Club in Montgomery, @.69 at Buc-ees in Auburn.
oh wow!
She’d love it to be over $5.
(it’s an Election Year)
Yep, coming up.
It was $2.67.9 here in the Midwest when I filled up last night.
Ya gotta kun lujan-grisham-alvarez-obrador-sanchez-jones
Yep. Just fell to $2.999/gal. here in my little corner of KY. (Actually, I saw $2.89 last week, when we were traveling to another area of the state.)
or people are driving less?
i still remember when “thrills are cheap as gas and gas as cheap as thrills...”
I filled my car up today and it’s around $25 cheaper for a tank from what it was last year at this time.
Election year manipulation for sure.
So, go buy some beef, some canned goods, a house or a car. How’s that working for you?
We noticed it down to $3.09 in SW Wisconsin when we were out and about today.
“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’.”
If you have a choice then, of course. I’ve lived ‘rural’ for so long that one gas station to use is all I’ve had for a very long time. :)
Yep. The price of gas is probably the LEAST of most peoples worries these days. :(
Worrying about the advancing ‘Full Frontal Communism’ is higher up on the Worry List for me. ;)
$2.99/gal. for no-ethanol here, and $2.56/gal. for E-10.
Not going to complain (much), but I still remember that it was a LOT cheaper under Pres. Trump. Would be great to get that back -- both price, and President.
Agree and suspect gas prices will continue to come down the closer we get to Election day ....or month or whatever Dems want it to be. Gee, see what a good job Joe is doing...NOT!
Agree and suspect gas prices will continue to come down the closer we get to Election day ....or month or whatever Dems want it to be. Gee, see what a good job Joe is doing...NOT!
Gas is $2.89 in my neck of Minnesota.
It’s already around two fiddy per gallon around these parts...
Since it's not a direct tax, but voodoo carbon credits, it's hard to tell. A state gas auditor turned whistleblower thinks it's more like fifty cents.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.