After months of rising prices at the pump, the American consumer is finally starting to feel some relief thanks to the drop in oil prices, which have fallen by one-third since October (with the US benchmark for crude prices briefly dipping below $50 a barrel this week before reports that Russia had accepted the need for production cuts helped pushed crude futures higher on Thursday).
Not long after prices climbed above $4 a gallon at some gas stations in California, the national average gas price has fallen for seven straight weeks to $2.53 a gallon, its lowest level since March.
And Bloomberg is reporting that at least one gas station in 20 states is selling sub-$2 gas. The cheapest gas in the country can be found at Buc-ee’s station in Denton, Texas, where one gallon costs just $1.69, according to GasBuddy.
Global oil prices have plunged as US waivers have allowed Iran to continue exporting oil, removing exaggerated anxieties about a possible supply crunch. Meanwhile, climbing output in the Texas oil patch, as well as accelerating production in Saudi Arabia and Russia, has raised fears about a glut.
Lower prices could save Americans $125 million a day compared with what was being paid in early October, according to one analyst quoted by Bloomberg, a phenomenon that Trump has said would have the same stimulative impact as another tax cut.
This article appeared at ZeroHedge.com at: https://www.zerohedge.com/news/2018-11-29/trump-wins-gas-prices-slide-lowest-march-shale-production-soars