The U.S. normal sell cost for unchanging gasoline was $2.24/gallon (gal) on Aug 29, a lowest cost on a Monday before Labor Day given 2004, and 27¢/gal reduce than a same time final year. Lower wanton oil prices are a categorical cause behind descending U.S. gasoline prices. Lower wanton oil prices simulate continued high tellurian wanton oil and petroleum product inventories and increasing drilling activity in a United States.
The U.S. normal sell gasoline cost increasing 51¢/gal given a new low indicate in mid-February, when gasoline prices averaged $1.72/gal. The arise in gasoline prices was a outcome of aloft wanton oil prices and clever direct during a summer pushing season.
On a informal basis, normal gasoline prices operation from $2.59/gal in a West Coast segment to $2.01/gal in a Gulf Coast region. The West Coast, quite California, has a top gasoline prices among states surveyed in EIA’s weekly Gasoline and Diesel Fuel Update, that is a outcome of a firmly offset gasoline market, tighter environmental specifications, and aloft taxes in West Coast states. As of Monday, Aug 26, gasoline prices averaged $2.71/gal in California and $2.74/gal and $2.75/gal in Los Angeles and San Francisco, 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 $2.01/gal for a segment and $1.97/gal in Houston.
As tumble approaches and U.S. pushing decreases, reduce gasoline demand, shifts to reduction dear winter fuel specifications, 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 will decrease to an normal of $1.95/gal during a fourth entertain of 2016 and will normal $2.06/gal for 2016.