The average price of regular gasoline at U.S. pumps slid to the lowest level in almost four years, dropping 18.18 cents in the two weeks ended Oct. 24 to $3.0759 a gallon, according to Lundberg Survey Inc.
Prices are 28.69 cents lower than a year ago, according to the survey, which is based on information obtained at about 2,500 filling stations by the Camarillo, California-based company.
The average is the lowest since Dec. 17, 2010, as oil, which makes up 64% of the pump price, has fallen by 24 =% from this year’s peak in June.
The highest price for gasoline in the lower 48 states among the markets surveyed was in San Francisco, at $3.45 a gallon, Lundberg said. The lowest price was in Memphis, Tennessee, where customers paid an average $2.73 a gallon. Regular gasoline averaged $3.33 a gallon on Long Island, New York, and $3.39 in Los Angeles.
West Texas Intermediate crude, the U.S. benchmark priced in Cushing, Oklahoma, declined $4.81, or 5.6%, to $81.01 a barrel on the New York Mercantile Exchange in the two weeks to Oct. 24. It dipped below $80 on Oct. 16 for the first time since June 2012.
U.S. oil output was 8.95 million barrels a day the week of Oct. 10, the most since 1985. U.S. production has increased about 66% in the past five years as companies have used horizontal drilling and hydraulic fracturing to tap into hydrocarbon-rich layers of underground shale rock.
Source: Transport Topics