After spending several weeks at around $2.19 per gallon, the price of regular gasoline has now dropped for two straight weeks, reaching $2.12 last week. That was a drop of four cents per gallon lower than the previous week.

Crude oil dropped below $34 a barrel early Monday but recovered to around $35.70 in the late morning. Crude oil last traded at around that price in mid-June.

Rising production from Libya has risen to more than 800,000 barrels a day, after dropping to less than 100,000 barrels a day. The country’s political factions agreed in September to form a committee to resolve the disputes between the government and the Libyan National Army (LNA). Production has recovered faster than expected and could reach 1.3 million barrels a day early next year.

U.S. politics also is playing a major role in falling pump prices. Rising numbers of COVID-19 infections threaten the fragile economic growth of the U.S. economy as some states begin reimposing restrictions on reopening businesses.

Patrick DeHaan, head of petroleum analysis for GasBuddy, commented:

In just the last few days, it feels like uncertainty over a potential legal fight over the U.S. election has also risen to near panic levels, all of which throws more uncertainty into the ring, keeping the U.S. from potentially having a clear leader to turn things around. For now, it’s virtually guaranteed that the national average will fall to under $2 per gallon in the next two weeks, so motorists need not be in a rush to fill their tanks.

The average cost at the most expensive 10% of stations stands at $2.99 per gallon, down two cents week over week, while the lowest 10% average $1.66 per gallon, down five cents. The median U.S. price is $1.99 per gallon, five cents lower than last week and about 12 cents lower than the national average.

The five states where drivers are paying the most for gas are Hawaii ($3.43), California ($3.22), Washington ($2.69), Nevada ($2.58) and Oregon ($2.50).

The five states where gas is cheapest are Missouri ($1.76), Oklahoma ($1.77), Mississippi ($1.78), Texas ($1.80) and Arkansas ($1.82).

Compared to last month, the national average is up by 6.5 cents per gallon, and compared to last year, prices are down by nearly 49 cents per gallon.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.