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Home / Business / US gas prices tumble next $2 — and in some places underneath $1.60
US gas prices tumble next $2 — and in some places underneath $1.60

US gas prices tumble next $2 — and in some places underneath $1.60

Christmas came early for U.S. drivers on Monday, as a inhabitant normal gasoline cost fell next $2 a gallon for a initial time given Mar 2009.

AAA put a normal U.S. gas cost during $1.998 per gallon on Monday, while fuel-price tracking use distributed a inhabitant normal during $1.995 a gallon. That’s a lowest cost by possibly magnitude given Mar 25, 2009.

Unsurprisingly, drivers can credit a tellurian bolt of wanton oil for a solid vigour on gas prices. Brent wanton

LCOG6, -1.93%

a tellurian oil benchmark, plumbed levels final seen in 2004 on Monday, while a Jan agreement for a U.S. benchmark

CLF6, -1.18%

West Texas Intermediate crude, was down 49 cents, or 1.4%, forward of death during $34.24 a tub on Nymex. The most-active Feb contract

CLG6, -1.36%

  is down 1.3% during $35.58.

“In areas where there are no refinery bottlenecks, we’ve been means to see a descending cost of wanton oil translated directly into cheaper gas prices,” pronounced Patrick DeHaan, comparison petroleum researcher during, in a phone interview.

Nymex reformulated gasoline futures for Jan smoothness

RBF6, -4.83%

 slumped 6.33 cents, or 5%, to $1.2114 a gallon.

So how low are gas prices? In most of a country, a cost is already good underneath $2 a gallon, AAA notes, with 1% of stations offered gas during $1.59 a gallon. On a state-by-state basis, Missouri has a lowest normal cost during $1.77, followed by Oklahoma and South Carolina during $1.78, and Tennessee and Kansas during $1.79.

Not everybody is celebrating during a pump, however. Lingering problems surrounding a Torrance, Calif., refinery, that suffered an blast in February, and problems during other informal comforts have seen prices creeping aloft in California and other western states, DeHaan noted. Exxon Mobil concluded to sell a crippled Torrance refinery to eccentric refiner PBF Energy in September.

Gasoline prices might be due for a near-term rebound though are expected to sojourn underneath vigour by winter, interjection to diseased anniversary demand, pronounced DeHaan. He sees prices potentially contrast $1.85 by mid-February.

AAA estimates that cheaper gas prices have translated into some-more than $115 billion in assets on gasoline in 2015, equal to around $550 per protected driver.

Will a continued dump in gas prices interpret into a some-more strong holiday sell sales? While a pointy dump in appetite prices given mid-2014 has been a bonus for consumers, it so distant hasn’t translated into a boost to consumer spending many economists had primarily penciled in as consumers were, during slightest during first, demure to spend their windfall. Read: Here’s a mistake economists done about descending oil prices.

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