Gasoline prices in week before Labor Day lowest in 11 years

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The U.S. normal sell cost for unchanging gasoline was $2.51/gallon (g) on Aug 31, a lowest cost for a Monday before Labor Day given 2004, and 95¢/g reduce than a same time final year. Declines in wanton oil prices are a categorical motorist behind descending U.S. gasoline prices. Lower wanton oil prices simulate concerns about mercantile expansion in rising markets, expectations of aloft oil exports from Iran, and stability tangible and approaching expansion in tellurian wanton oil inventories.

Image credit: EIA

Image credit: EIA

The U.S. normal sell gasoline cost increasing 47¢/g given a final week of January, when it was $2.04/g, driven by rising wanton oil prices progressing in a year, clever direct during a summer pushing season, and random refinery outages on a West Coast and some-more recently in a Midwest.

Image credit: EIA

Image credit: EIA

On a informal basis, normal gasoline prices operation from $3.16/g on a West Coast to $2.20/g in a Gulf Coast. Gasoline on a West Coast, quite in California, continues to be in brief supply, and California continues to have a top cost among states surveyed in EIA’s weekly Gasoline and Diesel Fuel Update. As of Monday (August 31), gasoline prices averaged $3.34/g in California and $3.55/g and $3.24/g in Los Angeles and San Francisco, respectively.

Although gasoline prices in a Midwest have depressed in new weeks, an random outage of a BP refinery in Whiting, Indiana, formerly caused sell prices in that segment to boost 60¢ per gallon on Aug 17. Gasoline prices in Chicago and Cleveland now normal $2.95/g and $2.31/g, respectively.

The Gulf Coast region, where most of a nation’s petroleum refinery ability is located, continues to have some of a lowest-priced gasoline in a nation, averaging $2.20/g for a segment and $2.21/g in Houston.

As tumble approaches and U.S. pushing levels are lower, reduced gasoline demand, shifts to reduction dear winter specifications for gasoline, and reduced wanton oil purchases by refineries undergoing anniversary upkeep have a intensity to put downward vigour on wanton oil and gasoline prices. In a Aug Short-Term Energy Outlook, EIA forecasts U.S. unchanging gasoline prices to decrease to an normal of $2.11/g during a fourth entertain of 2015, and projects an annual normal sell gasoline cost of $2.41/g for 2015.

Source: EIA