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State gas prices continue to drop; prices predicted to decrease as holidays approach
Just in time for the Thanksgiving holidays, California fuel prices are predicted to dip further this month, according to the AAA Fuel Gauge Report.
The Energy Information Administration (EIA) weekly report recently revealed that West Coast gasoline supplies are hitting record lows, which can likely be tied to the fall maintenance schedule. Most West Coast refineries are set to come back online this month.
On Tuesday the average price of California unleaded regular gas was $2.79, the same price as one month ago.
Northern California’s average price for regular gasoline this week is $2.69, a decrease of $0.06 from a month ago.
Of the California cities surveyed by AAA, Marysville posted the lowest price at $2.36, and South Lake Tahoe has the highest average at $2.93.
“Prices have been relatively steady over the past week despite tightened supply in the California market and the wrap up of planned maintenance on the Olympic pipeline early last week in the Northwest.” said Cynthia Harris, AAA Northern California spokesperson. “BP shut down operations on its Pacific Northwest pipeline system to conduct planned maintenance October 27 and reopened the line a few days later.”
The national average price for gasoline remains relatively flat compared to one week ago, although pump prices have been pressured higher in some regions due to disruptions on the Colonial Pipeline. This week's average price for regular unleaded gasoline is $2.21 per gallon.
Last week, following the explosion and shutdown of Colonial Pipeline Line 1 crude oil was trading higher, but the company quickly announced that Line 1 was scheduled to restart on Nov. 7.
The restart announcement had a chilling effect on the market and crude oil prices dropped below $45 dollars a barrel.
Colonial Pipeline could face congressional scrutiny after the deadly pipeline incident. Several Members of Congress are requesting a comprehensive examination of Colonial Pipeline and the company's management as it relates to the maintenance and integrity operations of the system.
Also weighing on the market are the continued negotiations amongst OPEC and non-OPEC members.
The secretary-general of OPEC announced Tuesday that the group was still committed to developing an output deal to cut oil production, but no formal agreement has been reached. Traders will keep a close eye on the Colonial Line 1 restart and upcoming OPEC meetings.
At the close of Friday’s formal trading session on the NYMEX, WTI was down 59 cents to settle at $44.07 per barrel.
To get the best mileage possible, AAA recommends keeping tires at the proper pressure suggested by the vehicle manufacturer, performing routine maintenance and making sure fluids are clean and belts and hoses are in good repair. The way you drive can also impact fuel economy. Smooth driving to avoid sudden stops and starts, combining trips and lightening your load also help conserve gasoline.
AAA’s Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express LLC.