As noted in this morning’s Short Takes, gas prices are falling to close to $3 a gallon in some places. Yesterday morning I paid $3.59 at the Marathon on Old Cutler Road in Palmetto Bay, which was the same price as the Shell across the street. Up the road on US 1 in South Miami, I saw it going for anywhere from $3.69 to $3.89.
The reason seems to be that we — the U.S. — have a lot of oil to go around… assuming, that it isn’t leaking out into the streets of your local cul de sac.
While crude prices posted some gains in early Monday trading, petroleum futures have been in sharp decline for several weeks. One key reason, reports the federal Energy Information Administration is that the country’s inventories are now at a 22-year peak.
The U.S. has been rapidly ramping up oil production for several years and is expected to actually be a larger producer than Saudi Arabia and other OPEC providers by mid-decade. That doesn’t necessarily translate into lower prices, as petroleum is traded as a global commodity. But despite concerns about Mideast instability – notably reductions in production in war-torn Syria – there appears to be a good supply, if not a glut of the black gold now available around the world.
So what’s gas going for in your part of the world?