M – Gas prices continued to fall in many parts of the country the past week thanks to an abundant supply of cheap oil and robust output from US refineries. US oil was trading at less than $41 a barrel early Thursday, about the same as a year ago.
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“Large inventories and strong production from local refineries have pushed wholesale and retail prices lower for many weeks, creating about a $1.40 gap between wholesale and retail, a gap that should be narrower looking at historical trends”, said Jeffrey Spring, the Automobile Club of Southern California’s corporate communications manager. Premium gas is 47 cents cheaper at $2.63 and diesel fuel is 41 cents cheaper at $2.31.
US crude oil supplies are at the highest level for this time of year in 86 years, although domestic oil production has ticked lower each of the past nine months.
National pump prices have fallen 50 of the past 51 days for a total of 25 cents per gallon.
Overall, domestic deliveries are 1.7 percent higher during the first half of 2016 than the same period last year, which is in line with AAA reports of travelers taking advantage of lower gas prices and hitting the roads in record numbers this year.
AAA Texas said Thursday that the average is 49 cents less per gallon than past year.
The Orange County average price today dropped to its lowest amount since March 11, decreasing 1.4 cents to $2.688.
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Though pump prices declined in many areas the past week, some motorists saw increases. Prices also rose in the Chicago area and in parts of MI.
