Once summer is over and people aren’t traveling as often and buying as much gasoline, demand price will drop.
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Retail gasoline prices across Texas slipped a nickel this week to settle at $2.48 per gallon.
Increased Midwest refinery production is being partially credited with Indiana’s continued downward swing in gas prices, a trend that is also being seen across most of the United States, according to AAA Hoosier Motor Club.
Prices in selected cities in the state range from $2.42 per gallon in Lawton to $2.69 in Guymon.
Thanks in part to what is being referred to as an oversupplied market, domestic crude inventories grew by 2.5 million barrels in the most recent weekly report, while the number of U.S. oil rigs grew by 21, the largest gain since April 2014. That’s down from Tuesday’s average of $2.697, and the price looks like it is just going to keep going down.
Tammy Arnette of AAA says the price in Virginia is ten cents a gallon lower than last month and 85 cents cheaper than last year at this time.
Prices at the pump may even fall below the $2 level in the winter for several states, according to Tom Kloza, global head of energy analysis at the Oil Price Information Service.
Currently, West Texas Intermediate crude has fallen to around $49 a barrel.
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Kloza said the biggest price decline “should come with the switch over when vapor pressure can be raised in various increments after September 15”. “We will see thousands of stations in dozens of states with sub-$2 gasoline prices by then”.
