AAA: Lowest fuel demand in two years keeps prices at the pump down – for now

Weiser drivers are getting some relief at the gas pumps in the new year after prices began to tumble both nationwide and in Idaho during the last quarter of 2018. 
 Idaho’s average gas price of $2.46 per gallon on Monday was 30 cents cheaper than one month ago and 10 cents cheaper than one year ago. 
 As is nearly always the case, Idaho drivers are still paying more than the U.S. average gas price of $2.24 per gallon. 
 In Weiser, gas prices on Tuesday were slightly below the state average. Prices ranged from $2.38 to $2.41 around town, a difference of 3 cents. 
 There’s more good news – the trend of seasonal savings continues into January, thanks to an abundance of global crude oil and the lowest fuel demand in nearly two years, according to AAA Idaho.
 “The price for a barrel of crude oil topped $76 in early October, but now, it’s trading closer to $50,” AAA Idaho spokesman Matthew Conde said.  
 “Prices are low because the market continues to believe that there is a glut of crude oil out there, more than enough to meet the reduced fuel demand, which is at its lowest point since February 2017.”
 After several months, the Gem State is also out of the top 10 for most expensive gas prices, coming in at No. 13, Conde said.
 After a quiet winter, gas prices surged to kick off the 2018 travel season, before plateauing for most of the spring and summer.  
 Around Oct. 1, gas prices took a nose dive, bringing some much-needed relief at the pump for holiday travelers, even with record numbers hitting the roads.
 But Conde warns there may be a speedbump on the horizon. 
 OPEC’s production cuts went into effect Jan. 1, with plans to reduce crude oil production by 1.2 million barrels per day for at least the first six months of the year in an attempt to stabilize the global crude supply.  
 If the organization’s plans are successful, the existing supply will tighten, putting upward pressure on crude oil prices, and, in turn, gas prices.
 “Crude oil makes up about half of the cost of gasoline, and if OPEC’s production cuts don’t push gas prices higher, increased fuel demand in the spring likely will,” Conde said. “Short term, however, pump prices are still pretty friendly to drivers’ wallets.”
 According to AAA, 12 states currently have an average gas price below $2 per gallon and 36 states have an average price below $2.50 per gallon.  The most expensive fuel can be found in California at $3.32 per gallon.
 

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Signal American

18 E. Idaho St.
Weiser, ID 83672
PH: (208) 549-1717
FAX: (208) 549-1718
 

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