US: gas price slides below $2 a gallon in Detroit image

The lower global demand for oil, coupled with the continued production and planned non intervention from the OPEC and the other world producers have led to a spectacular fall in US gas prices.

During the final days before Christmas, Detroit residents will have more cash at hand as the gas prices have dipped below the $2 a gallon threshold price in a series of gas stations across metro Detroit. According to the AAA Fuel Gauge Report, across the state of Michigan, gas prices have continued their descent, falling 25 cents per gallon over the past week. Alongside the price of oil per barrel, gas prices have plummeted rapidly across the US in recent months – while internal production is set to continue its growth trend. Michigan’s average price for a gallon of regular gas is now $2.21, according to AAA’s Fuel Gauge Report, while at the beginning of last week it was $2.54 per gallon.

On a nationwide level, the average price for a gallon of regular is $2.39 – dropping from last Monday’s level of $2.54 per gallon – for the sixth straight week of average prices falling. “The automotive industry tends to perform inversely to gas prices,” commented Donald Grimes, a university of Michigan economist on the matter.