The average price of a gallon of gasoline in MA fell a penny last week, AAA Northeast said.
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One might call the current gas prices as part of a “perfect storm”, what with holiday travel just around the corner.
The last time the state saw prices below $2 was in January. That would be a 0.6% increase over last year and the seventh straight year of growth.
AAA Travel reports almost 46.9 million Americans will journey 50 miles or more from home during the Thanksgiving weekend. That’s according to travel agency and auto lobbying group AAA.
Analysts cited increased domestic crude oil production for lower prices at the pump, as well as the possibility of the Federal Reserve raising interest rates. Global supply continues to outpace demand, while a strengthening US dollar, which makes crude oil more expensive for buyers holding foreign currencies, is expected to keep a ceiling on prices into 2016.
In metro Detroit, the average price per gallon for regular gas was even lower, at $2.07, down 5 cents from Tuesday.
On November 13, the U.S. Energy Information Administration lowered its crude-oil price forecasts for this year and 2016, causing futures to dip below $40 a barrel. Drivers are benefitting from relative savings in the price of retail gasoline with today’s average six cents less per gallon than one week ago and 11 cents less than one month ago.
DeHaan said the national trend now is for retail prices to continue to lower “and for the next two months individuals stations could drop to around $1.50 to $1.60 per gallon”.
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“While a few may expect price hikes”, said Gregg Laskoski, senior petroleum analyst for GasBuddy, “the broader view seems to hold that despite the horrific attacks and the outrage felt globally, the financial markets have shown increasing resilience in recent years and are rarely spooked when fundamentals and infrastructure are uncompromised”.
