Gallon of Gasoline Down 25 Cents In Just Two Weeks
Good news for anybody that is planning on doing a considerable amount of driving over the near future - gasoline prices in the United States are now the lowest that they have been since May of 2009.
According to a new survey, gasoline prices in the United States have dropped by over $1.25/gallon since May. The drop in prices has been especially prevalent over the past couple of weeks, with a gallon of gasoline dropping by 25 cents during that time.
According to the Lundberg survey, the average price of a gallon of regular-grade gasoline in the United States was $2.47/gallon as of December 19th. Missouri, Oklahoma and Texas all have average prices of close to $2/gallon, with Dallas, Texas reporting the lowest prices in the country ($2.018/gallon).
The reason for the drop in gasoline prices is readily apparent - plunging oil prices. Oil prices have been on the decline over the past number of months, with things really having accelerated since November 19th. On that date, OPEC revealed that they would NOT be cutting production targets in order to raise global prices. By refusing to cut production, OPEC was taking direct aim at the United States and their surging oil production numbers. By allowing the price of oil to drop, OPEC is hoping to damage the burgeoning US oil industry and perhaps even the electric vehicle industry in the process.
The strategy has been working so far, as many US-based oil companies have announced planned cutbacks in capital expenditures due to the recent decline.
While the plunge in gasoline prices have certainly been welcomed by US households, most analysts expect that the prices will be levelling out in short order.
Source: Finance.Yahoo.com - U.S. Gas Prices Fall To Lowest Since May 2009: Lundberg Survey
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