US: study shows gasoline has dropped below $3 image

For the first time in about four years, according to research conducted by Lundberg Survey Inc, the average price of regular gasoline across the US slid 13.38 cents to $2.9421 a gallon.

The study was conducted for the two weeks that ended on November 7, and the study puts the gasoline prices 27.55 cents below the figure registered during the same period of 2013. The Camarillo, California-based company obtained its information from around 2,500 filling stations. Trilby Lundberg, the president of Lundberg Survey, said that the new average is the lowest recorded since December 2010 and is down no less than 78.04 cents a gallon from the May 2 peak of $3.7225.

She added that drivers would be facing the highest price for gasoline in the lower 48 states in San Francisco, at $3.27 a gallon. The best figure has been recorded in Memphis, Tennessee, where car owners only needed $2.65 for a gallon. According to the study, the price is dropping because the US is less reliant on importing crude oil and has increased its internal production from various sources, including the so-called frakking procedure. Lundberg’s forecasted outlook predicts that global demand from the Organization of Petroleum Exporting Countries (40% of global supply) could drop o a 14-year low of 28.2 million barrels a day in 2017 – 800,000 barrels a day lower than the amount requested for 2014.

Via Bloomberg