The lowest seasonal level in four years
U.S. drivers are set to benefit from an expected further decline in pump prices from the lowest seasonal level in four years with crude oil at a two-year low.
Retail regular gasoline slid to $3.328 a gallon yesterday, down 10 percent from this year’s high and the lowest for this time of year since 2010, according to AAA. The national average may fall as low as $3.10 before the year ends, the Heathrow, Florida-based largest U.S. motoring group, predicted.
Pump prices have followed declines in New York-based gasoline futures and Brent crude, a global benchmark for oil prices. Rising production from shale has pushed U.S. crude output to a 28-year high, helping increase global supplies as demand is slowing and OPEC production is at a one-year high.
“All factors are pointing to lower gasoline prices this winter due to lower prices of crude oil, a decline in driving and abundant domestic supplies,” said Michael Green, a Washington-based spokesman for AAA. “For every $1 change in the price of crude oil, you can see gas prices drop about 2 cents per gallon.”
Pump prices dropped 9.2 percent in the third quarter, the biggest decline since the three months ended Dec. 31, according to AAA. Gasoline futures slid as much as 2.6 percent to $2.3854 today on the New York Mercantile Exchange, the lowest level since January 2011.