GasBuddy: Biggest Weekly Drop In Gas Prices Of 2015

While energy and commodity investors have been agonizing over the global oil supply glut and fears of weak demand from China, there is one segment of the population that has been cheering the decline in oil prices every cent of the way: drivers. According to GasBuddy, the decline in WTI crude oil prices to below $40/bbl for the first time in more than six years triggered the largest weekly decline in U.S. gasoline prices of 2015.

The numbers
The national average gas price for last week came in at only $2.47/gal, 13 cents below the previous week’s average. Michigan led the way in price declines last week, with average gas prices falling 31 cents. The national average now stands 20 cents lower than one month ago and 96 cents below its average price this time last year.

Refinery up and running
It’s not just falling oil prices and international demand concerns that influence U.S. gas prices. In the midst of a massive global crude oil supply glut, concerns over a potential U.S. gasoline supply shortage were alleviates when BP PlcBP’s Whiting Midwest refinery recently came back online after an unexpected shutdown a few weeks ago.

Projections
GasBuddy is now projecting that up to half the gas stations in the U.S. will be charging less than $2.00/gal for gas by the end of the year. About 5.0 percent of the nation’s stations are already below that threshold.

The first states to drop below $2.00/gal will likely be South Carolina, Alabama and Mississippi, the only three states with averages already below $2.10.

Drivers in Hawaii, Nevada, California and Alaska are watching a different threshold. These four states are the only ones where drivers still pay more than $3.00/gal for gas.