Consumers, you may have noticed something encouraging as you drive up to your neighborhood gas station to fill up. Pump prices have been steadily going down.
And market indicators point to more relief at the pump in the waning months of 2014, even possibly a test of the $3 per gallon benchmark.
After peaking at about $3.70 per gallon in June, gas prices have been mostly trending downward for two months.
A global glut of crude oil is biggest factor in the falling prices. Relatively cheap oil has made it more profitable for refiners to produce gasoline and other fuels. And they have fully taken advantage of this confluence by ramping up production to record levels.
It was not your normal summer for gas prices. There was an overall decline in average retail fuel prices nationwide during July and August, resulting in the cheapest Labor Day gas prices in years. Summer is peak driving season and prices normally increase.
Fall is the traditional time when summer prices come back down to more normal levels. But this year, prices will simply continue to fall.
As of Friday, the national average for a gallon of regular stood at $3.41, just a couple of pennies less than it was a week ago.
But a year ago at this time, the average was $3.55 per gallon. Just this past June 2014, it was $3.70.
“Global markets have kept a wary eye on geopolitical unrest, particularly in Ukraine and Iraq. However, these developments have had little impact on supply and subsequently the retail price of gasoline,” reports AAA in its latest Fuel Gauge Report.
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