Skip to main content
Tags: gasoline | energy | opec | russia | war | fuel | gas

US Gas Pump Prices Sink to 11-Month Low

Wednesday, 06 December 2023 10:01 AM EST

U.S. gasoline prices are the lowest they have been since January and by Christmas could fall below $3 a gallon for the first time since 2021, analysts said, which should boost consumer confidence during the holiday shopping season.

The national average price for a gallon of gasoline stood at $3.23 on Tuesday, down 15% since mid-September, data from the motorist group AAA showed. Lower pump prices have given American consumers some relief from inflation and left more cash for discretionary spending.

"Gas prices being down this year has allowed me to invest more into my small business than I could last year," said Macey Ropes, a tie-dye clothing store owner in Lafayette, Indiana.

Tamer fuel bills have also helped her set aside money for personal shopping and travel around the holidays, she said.

Gasoline prices averaged $3.008 a gallon in Indiana on Tuesday, almost half a dollar cheaper than last year.

Prices have softened with benchmark global oil prices, which settled on Tuesday at their lowest since July as traders worried about China's economy. Oil prices have fallen despite fresh oil supply cuts announced on Thursday by OPEC+, the Organization of the Petroleum Exporting Countries and its allies.

Global oil supplies are less strained than they were in the months following the start of the war in Ukraine.

The cost of crude is the biggest component in retail gasoline pricing. U.S. West Texas Intermediate crude futures settled at $72.32 a barrel on Tuesday, down about 10% this year.

U.S. refiners have lifted gasoline output since last year, helping to build inventories in recent months.

Total U.S. motor gasoline inventories stood at 218.18 million barrels as of Nov. 24, 2% higher than a year ago and the highest for this time of the year since 2020, according to data from the Energy Information Administration.

The national average price of gasoline is set to decline up to half a cent daily through the end of year. This could bring it below $3 a gallon for the first time since early 2021, said Andrew Gross, a spokesperson with the American Automobile Association.

Declining gasoline prices could boost the consumer confidence index, which rose for the first time in November after three consecutive months of declines.

"It is argued that gasoline rising towards $4 a gallon gasoline hurts consumer psyche, so a drop toward $3 should help keep it strong" said John Kilduff, partner at New York-based Again Capital.

© 2024 Thomson/Reuters. All rights reserved.


US
U.S. gasoline prices are the lowest they have been since January and by Christmas could fall below $3 a gallon for the first time since 2021, analysts said, which should boost consumer confidence during the holiday shopping season.
gasoline, energy, opec, russia, war, fuel, gas, oil, consumer, price, inflation
405
2023-01-06
Wednesday, 06 December 2023 10:01 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
Get the NewsmaxTV App for iOS Get the NewsmaxTV App for Android Scan QR code to get the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved