Gas prices may continue to dip but not necessarily into 2019.
On Monday, Dec. 10, the national gas price average rolled in at $2.42—the lowest of the year, and a number not seen at gas pumps since mid-December of 2017.
According to AAA, the national average is four cents lower than last week, 28-cents cheaper than last month and four cents less than last year. It was July 2017 the last time drivers saw cheaper pump prices on the week, month and year.
“Motorists are noticing a big difference as they fill-up at the gas pump this month,” said Jeanette Casselano, AAA spokesperson. “Month-over-month, gas price averages have dropped double digits for every state. For some in the Great Lakes and Central states (Iowa, Kansas, Nebraska and Missouri) state gas prices are as much as 40-cents less than they were in November. In some states, gas prices are nearing $2 per gallon – something that hasn’t been seen since December 2017.”
AAA predicted the national gas price average will drop as low as $2.40 by the end of the year due to cheaper crude oil prices, but that doesn’t mean we’ll see low prices in 2019 too.
AAA pointed out that on Friday, the Organization of the Petroleum Exporting Countries (OPEC) announced that the cartel and non-OPEC members, including Russia, plan to reduce production by 1.2 million b/d for the first six months of the year. The decision will assist in reducing the high level of global crude supply, but the move may also push oil and gas prices higher.