Gas Prices Are Still Dropping With No Signs Of Stopping.

[ShadowsPapa]

Gas prices have been reliably falling month over month since this summer’s record highs. Last week, 22 states had an average gas price under $3.00. Texas led the way with an average gas price of $2.70.

Demand Is Still Lower than Last Year
Current gas demand in the US is still 300,000 barrels per day lower than this time last year. And that’s even after demand grew from 8.26 million to 8.71 million barrels per day in mid-December.
Even with upticks in demand, gas supply in the US grew by more than 2.5 million barrels.

Prices Should Continue Falling in New Year
Here’s what AAA spokesperson Andrew Gross had to say about the ongoing fall in prices.
“The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last Spring. Combined with low seasonal demand, gas prices could slide a bit more before leveling off.”
If supply continues to outpace demand and demand remains lower through the winter, these declining prices will likely continue.

How Does This Impact Car Prices?
Filling up a tank of gas is a minuscule expense compared with purchasing a new car. But the two prices will always be inextricably tied.
As gas prices rise, we see buyers favor fuel-efficient cars. That means buyers are buying fewer non-work trucks, performance cars, and large SUVs.
Prices go so high this summer that we were seeing people giving up gas altogether, choosing to make the switch to an EV or give public transit a try.
But now that gas prices have fallen for a prolonged period of time, we see a large uptick in the quantity and prices of the less fuel-efficient cars on our marketplace.
So if you’ve been thinking about selling a gas guzzler, do it before gas prices go back up in the spring.

You may want to look out the window in Iowa.
Price up bigly in the last 2 weeks - 40 to 60 cents higher.
Ya should have posted that a month ago....... then update it today for the rise. And they are saying "steady increases for the coming months".
The drop ended last year.

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[ShadowsPapa]

As gas prices rise, we see buyers favor fuel-efficient cars. That means buyers are buying fewer non-work trucks, performance cars, and large SUVs.

PS - no, not around here. The number of the big new Jeeps and the huge Cadillac and GM "men in black" SUVs is on the rise - I mean they are everywhere now. And big full-size trucks? On the increase here. The numbers are actually going up, but then this is farm and construction area here - the demand for big trucks is growing.
They may be different in some places, like Florida, for example, where my son just bought a new Audi EV SUV (about the size of the Compass he traded in) and he said the dealers aren't selling hybrids and gas vehicle sales have dropped, the demand for EVs is rising in his area. Like he said - they don't typically drive any farther than the range of that new vehicle can take them. He saw no need for a gas vehicle that made only shorter drives and infrequent drives. They were putting only about 7,000-8,000/year on the Compass. 45,000 miles and that includes a drive from FL to IA and back and driving around Iowa while they were up here. So my guess - they were only putting 7K a year on it.
Anyway, we chatted for a while and the vehicle sales and demand are a whole lot different there than here. Here you drive a while to get anywhere, and you need a truck. There - no so much.

 

[ToJTornottoJT]

Demand is a function of price... demand is down because the price is up. The supply was artificially increased by selling the reserve. Now the reserve is depleted. Prices will go back up.

 

[WetWilly]

.37 higher than a week ago. News is saying possibly 7.00 gal in 2023.

 

[Jefe1018]

$3.99 diesel in SE Michigan.

I’ll take my winters

 

[TimC]

NY is set to end it’s gas tax holiday any day now. $.33 per gallon jump will result.

 

[BAT]

Well after depleting the oil reserves to make those prices drop they have now started to rise again. Gas in my area has risen steadily over the past weeks and is not in the $2.80-$3.00 range and expected to continue to rise

 

[Ben06]

Bring the price up by 75% for a short time then slowly drop it by 50%............. repeat as necessary until you accomplish your goal. It's conditioning. It works for more than just gas.

 

[Iowafarm]

On the news. They are talking that gas will be over $4.00 again by summer.

The guy I buy fuel from is being told to buy contracts early in this month. Befor new years could have locked in my price at 3.08. I am being told it will get close to 3.00 for red deisel. Planning to lock in my 8 tanker loads sometime soon.

 

[Jeepasaurus_Rex]

I'm happy with our current prices here for now, but they seem to be going up a little bit each week
$2.59 regular
$3.79 diesel

 

[Closet Jeep guy]

Not in Canada ,oil tanked the last 2 day but gas was up before new years .25c a litre lol

 

[PsyRN]

Lowest price of gas around here has been about 3.99 for the last couple of weeks. Down about a dollar from just a month or so ago, and $1.50-2.00 from last summer. So even if it goes up another 25c-50c, that's still better then it was.

 

[BeepBeep]

Just jumped about .70 cents over the last few days here.

 

[Geoarch]

Brent crude was $77.84 today down 4+%. It's tempting to say it's people buying EVs and PHEVs, although the Wrangle 4XE IS the fastest selling PHEV, and only PHEVs sold better than gas and diesel vehicles last year. We'll see if the oil price stays down if PHEVs sell as well next year. Why gas prices went up is a mystery. Some CEO must want a new yacht.

 

[Geoarch]

On the news. They are talking that gas will be over $4.00 again by summer.

Then PHEVs and EVs will still sell. And is this in PA, CA, TX, NM or? Gas in NM is only about 2.85 to 2.99 right now.

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