Gasoline Price Drops 6 Cents per Gallon in a Week

Nine states reported gas selling for $2 a gallon or less: South Carolina ($1.88), Mississippi ($1.91), Alabama ($1.92), New Jersey ($1.94), Louisiana ($1.94), Texas ($1.95), Tennessee ($1.95), Virginia ($1.99) and Arkansas ($2.00). Last Monday, only six states posted gasoline prices at or below $2 a gallon.

Not one metro market in the United States was averaging above $3 Monday. Los Angeles has an average price at $2.94 versus $3.42 a year ago; Chicago’s average was $2.52 versus $3.29 a year ago; and New York stood at $2.43 versus $3.42 last year.

The analysts at GasBuddy commented on the price decline:

The market fundamentals appear to be moving favorably for U.S. motorists; pushing the benchmark West Texas Intermediate crude lower, as it starts the week at $44.53 [per barrel]. The International Energy Agency reported earlier that global demand is projected to decline in 2016 and the apparent weakness in China and the U.S. economy drive two-thirds of projected demand. At the same time, gasoline supply is expected to return to robust levels in the U.S. and not surprisingly, the national average, $2.19 / gal., has declined by 6 cents per gallon in just the past week.

The price of a regular gallon of gasoline was down nearly 10 cents a gallon, compared with last month’s price, and is down nearly 85 cents compared with the price a year ago.

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