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Page added on August 27, 2014

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Labor Day gas prices cheapest since 2010

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The late summer slide in global crude oil prices will push the cost of U.S. gasoline to its lowest Labor Day level since 2010. Better yet: prices are likely to continue dropping to 2014 lows by mid-autumn.

Nationally, regular, unleaded gasoline will average $3.41 a gallon – 18 cents cheaper than 2013’s Labor Day weekend and 42 cents a gallon less than the record $3.83 average for the 2012 holiday weekend .

The energy markets have shrugged off tensions in the Middle East, the Ukraine-Russia conflict and minor supply disruptions during normal peak summer driving season.

But with demand now at seven-year lows and daily North American oil production at 8.46 million barrels- a five-decade high – geopolitical risks are having less impact on oil prices. Even news of a larger-than-expected drop in oil supplies is having little impact. On Wednesday, the Energy Information Administration said crude oil stockpiles fell to 360.5 million barrels last week, the lowest levels since January.

Still, benchmark West Texas crude oil eased 4 cents to $93.82 a barrel, down from a June $106 peak. Brent crude oil, which peaked at $115.75, currently trades at $102.64.

Pump prices should continue sliding through early November, when they could average $3.25, according to gasbuddy.com oil analysts Tom Kloza and Patrick DeHaan.

Eleven states; Missouri, New Jersey, Virginia, South Carolina, Tennessee, Mississippi, Alabama, Arkansas, Louisiana, Oklahoma and Texas, are close or below $3.25 a gallon now.

At $3.15 a gallon, South Carolina currently has the nation’s lowest average gas price. Highest: Hawaii, averaging $4.31.

USA TODAY



9 Comments on "Labor Day gas prices cheapest since 2010"

  1. rockman on Wed, 27th Aug 2014 3:38 pm 

    Nationally, regular, unleaded gasoline will average $3.41 a gallon this Labor Day. Which is 175% higher then it sold for in September just 10 years ago.

    Just another perspective. Enjoy your “cheap” fuel this holiday.

  2. Plantagenet on Wed, 27th Aug 2014 3:56 pm 

    Drill baby Drill and frack baby frack has paid off. The US economy is in recovery and gasoline and energy prices are going down. But how long will it last?

    This would be a good time to do some long range energy policy planning for the future, when oil prices will jump up again. Unfortunately, our current administration is too stupid to take advantage of this opportunity.

  3. marmico on Wed, 27th Aug 2014 5:32 pm 

    Gasoline prices were $1.87 per gallon in September, 2004. That’s an ~80% nominal increase.

    Now if nominal regular gasoline prices are $3.50 per gallon in September, 2015, that will be a 0% real increase in the prior 10 years. 🙂

    EIA Real Price Viewer

  4. Harquebus on Wed, 27th Aug 2014 6:44 pm 

    “demand now at seven-year lows”
    This is the key. The world’s economies can not support >$100bl.
    I am one of those that “used” to be able to afford a car.

  5. Makati1 on Wed, 27th Aug 2014 7:45 pm 

    rockman, they don’t mention how much the average wage has fallen in those same 10 years. Today’s average wage, after inflation is about the same as that of the 70s. But then, most who graduate high school in the US cannot do math anyway.

  6. Steve O on Thu, 28th Aug 2014 7:19 am 

    Let’s think about this. ISIS is taking over Iraq, threatening their export capacity, and Libya has become a “failed state” halving their export capacity. I would think with that turmoil going on the oil markets would be running high.

    Any chance the drop in oil prices has more do with rich aunt Janet at the Fed slowing her money printing that it does with production and consumption?

  7. marmico on Thu, 28th Aug 2014 10:22 am 

    rockman, they don’t mention how much the average wage has fallen in those same 10 years.

    Because wages have risen. Don’t let facts get in the way of your narrative.

    Average Hourly Earnings of Production and Nonsupervisory Employees: Total Private

  8. rockman on Thu, 28th Aug 2014 11:09 am 

    M – “…they don’t mention how much the average wage has fallen in those same 10 years” Actually wages have skyrocketed. Oh…you mean the “little people”…not the Rockman. LOL.

    But seriously it’s cold comfort to see the majority struggling to deal with the situation. Which is why I don’t look out the window of my limo while I commute to work.

  9. marmico on Thu, 28th Aug 2014 12:00 pm 

    Who knew that a $4 per hour raise in 2014 paid for a limo. 🙂

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