The average price of gasoline in the United States dropped for the fifth consecutive week, as refineries are operating at high output and fuel supplies are increasing.
Over the last week, the nation’s average price of gasoline has fallen by 4 cents to $2.75 per gallon, according to GasBuddy’s analysis on Monday. The national average is down 22.6 cents from last month and 22.4 cents per gallon from last year, according to the analysis. The national price of diesel has dropped 5.4 cents in the last week to $3.521 per gallon.
Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement that oil prices have remained relatively low despite President Donald Trump’s blockade of all sanctioned oil tankers coming in and out of Venezuela.
“With refineries running at seasonally high output and gasoline inventories building, most states — outside of price-cycling markets — have continued to see declines, with some stations in nearly a dozen states now dipping below the $2-per-gallon mark,” De Haan said. “That trend could persist a bit longer before prices finally bottom out sometime in January or February.”
GasBuddy said Oklahoma has the lowest average oil price at $2.17, followed by Colorado at $2.33 and Texas at $2.33. Meanwhile, the states with the highest average prices include Hawaii at $4.36, California at $4.20, and Washington at $3.78.
The Trump administration has pushed a “drill, baby, drill” agenda on the oil industry, which has offered some relief at the pump.
But earlier this month, the Federal Reserve Bank of Dallas released its quarterly survey, which revealed that oil executives remain pessimistic about the market due to regulatory changes and trade policy.
The survey marked the fourth time executives have anonymously criticized the administration’s policies. Executives said falling prices could strain operations and investments, and they have warned throughout the year that the administration’s “drill, baby, drill” agenda would be unachievable with crude oil prices falling below $60 per barrel, given high supply chain costs driven by tariffs on steel and aluminum.
OIL EXECUTIVES PESSIMISTIC AS DRILLING ACTIVITY DIPS FOR END OF YEAR
As of Monday afternoon, the West Texas Intermediate, the U.S. benchmark, was up $1.19 to $57.99 per barrel. The international benchmark Brent crude oil was up $1.16 to $61.80 per barrel.
The U.S. Energy Information Administration’s Weekly Petroleum Status Report for the week ending Dec. 12 said U.S. oil inventories decreased by 1.3 million barrels from the previous week. U.S crude oil inventories are 4% below the five-year average for this time of year. EIA is expected to release its report for the week ending Dec. 19 soon, as the holiday schedule caused delays.
