US gasoline prices at lowest level since February 7

US gasoline prices have fallen to their lowest levels since February 7. During the two-week period ending September 19 the price of gas declined by 8.9 cents to $3.3741 (average) per gallon, Lundberg Survey Inc. announced on Monday.

According to Lundberg Survey Inc., retail gasoline is seasonally at a four year low. Crude prices in the US have dropped by over $10 a barrel since June.

Gasoline prices are now 14.66 cents lower than in September 2013. The Lundberg Survey gathers data from approximately 2,500 filling stations.

President of Lundberg Survey Inc., Trilby Lundberg, said:

“In this period, oil prices did migrate a little further south. Plus, US refiners slashed their wholesale gasoline prices and were aided in this by lower cost winter blend formulations affecting most of the country and a crash in ethanol prices.”

Of the 48 states covered in the Survey, San Francisco has the highest price, at $3.79 per gallon. At Jackson, Mississippi, where prices are lower than anywhere else in the country, drivers are paying an average of $3.03 per gallon.

Average prices are $3.58 and $3.70 in Long Island (New York) and Los Angeles respectively.

Lower crude prices

Mr. Lundberg said:

“Lower crude oil prices have been the main input over these thirteen weeks of pump price-cutting. However, in the latest two weeks, the crude oil price declines were not as dramatic as it had been.”

On Monday, greater supply than demand continued weighing on crude prices. Analysts say non-OPEC supply is plentiful, especially in the United States, while demand in China and Europe is weak.

However, a number of recent events could push up prices. A large oil field in Libya (El Sharara) has shut, resulting in a drop of 340,000 barrels of oil per day, while a missile attack at the Zawiyah refinery, also in Libya, means it is not producing its usual 120,000 barrels a day.

Anti-Russian economic sanctions by the European Union, United States and other allies could hit oil production. Exxon has had to wind down its drilling operations in the Arctic, however, this will affect longer-term supplies.

Analysts are evenly split in North America and Europe on how oil prices will behave over the medium-term.

On London’s ICE Futures exchange, November Brent crude was 61 cents down at $97.78 a barrel. Light sweet crude futures for October delivery were 35 cents down to $92.06 a barrel on the New York Mercantile Exchange.