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 ...
If you haven't been 'dollar cost averaging' on your gasoline, get in the habit. Fill up at the same time each week, at the same station no matter what the price. Over time, you'll have gotten the most for your dollars as prices fluctuate. This works well when investing, too. Same amount, same time of month, same accounts.
Works every time it's tried. :)
Below $4.00 would be nice in our vicinity. 😳
Some of the democRAT-run States will probably try to increase the gas tax. Inexpensive and abundant energy is anathema to these creeps.
I am fascinated how "news" became activist journalism, and now is morphed into telling the future with the wiggle word caveat that "could" also includes its opposite.
We now are told the temperature years from now, the geopolitical realities decades into the future, so many things that the Oracle at Delphi looks like a piker. And Nostradamus is passé. We have new oracles. So the media would have us think....
Obviously and you beat me to it.
Right they are buying votes from people that can not think, right after the 2024 election, if democrats win, the price will go sky high.
It’s $3.05 in my area.
Recession, less demand, lower prices.
Foretelling the past is -- or "could" be -- quite a game.
Trump 2024 plus closed borders.
no in california it’s not
It hit $2.99 in the Saginaw Bay area last week (Thanksgiving weekend).
Now back to $3.29
Supply and demand.
Place a forty cent climate change tax on fuel like they did here in WA.
It has been under $3.00 for quite sometime here in NE Al, SE Tn. was 2.66 a few days ago.
It’s $2.56 in San Antonio today; it changes nearly every day.
Here in East Central MO, gas is running between $2.91-$2.97 per gal
Here in Central Texas, it's running between $2.44 and $2.67.
Here in NC, with my BJs membership and associated VISA, $2.70.
Total BS. OPEC is hellbent on cutting production and causing higher prices.
Xiden doesn’t have the cred with them to cause an election year price drop.
There are other factors at play and I’m not going to pretend to know what’s behind this, other than to warn that this is probably the ‘calm before the storm’…
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.