Prices at the pump have fallen to their lowest levels since March – just in time for the holiday travel break – even though crude oil values have risen in recent weeks.
Source: Houston Chronicle
Seasonal declines in fuel prices and rising U.S. gasoline inventory volumes have outweighed the higher oil prices thus far. The Houston average for a gallon of regular unleaded is down one cent since last week to $2.14, while the national average dipped nearly three cents to $2.55, according to GasBuddy, which tracks fuel pricing nationwide.
“Gasoline prices have now slid to their lowest level since March thanks to rising U.S. gasoline inventories and sluggish demand, certainly bringing some Christmas cheer to motorists,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “The jump in gasoline inventories has been so large it has offset oil prices which touched $60 per barrel last week.”
Recent deals to for OPEC and Russia to reduce oil outputs early next year – coupled with the U.S. and China agreeing to reduce some tariffs – have propped up oil prices of late. However, crude prices are unlikely to rise much higher for now unless a broader resolution is reached in the U.S.-China trade war.
“It may take more inspiration for oil’s recent run to translate over lackluster gasoline, with motorists the clear beneficiaries – they’ll be able to spend a bit more on shopping for those last-minute Christmas gifts,” DeHaan added.
