The latest data from the U.S. Energy Information Administration (EIA) showed that the average cost for Regular gasoline in America fell during the past week by four cents to $2.41 per gallon, the first decrease in a month and the largest decline since November of last year. Regionally, the cheapest gas in the country can be found in Oklahoma, where a gallon of Regular costs just $2.07 on average. Residents of California as usual have to pay the most in the continental U.S. for Regular ($2.99/gallon), and Santa Barbara is the city with the nation’s highest average price ($3.20/gallon).
The latest pullback at the pump is not too surprising since crude oil has also been under pressure recently. In fact, the price for a barrel of West Texas Intermediate (WTI) crude has fallen by more than 8 percent since mid-April due to growing doubts that OPEC member-countries heavily reliant on oil as a source of income will be able to maintain the group’s planned production cuts. Moreover, hedge funds and other money managers cut their combined net long position in Brent and WTI derivatives by 139 million barrels last week, one of the largest declines on record. Regardless of why oil and gas costs have retreated recently, it is a welcome development for consumers who are already grappling with rising inflation pressures outside of the energy arena.
Sources: U.S. EIA, DShort, GasBuddy, Bloomberg, Twitter, Reuters
Post author: Charles CouchDisclosures