AAA: North Dakota Gas Average Falls Below $4
NORTH DAKOTA – The North Dakota gas price average fell for the eighth consecutive week, declining 16 cents from a week ago. The state average, which fell below $4 on Sunday, is now $3.97 per gallon. That's the lowest daily average price since May 4.
The state average has now declined a total of 81 cents per gallon since setting a new record high of $4.79 on June 15. The average cost for a fill-up is now $59 for a 15-gallon tank. That's about $13 less than what drivers paid two months ago.
"Falling oil prices and a decrease in gasoline demand have paved the way for the recent drop," said Gene LaDoucer, regional director of public affairs, AAA - The Auto Club Group. "More relief appears to be on the way after another round of losses in both oil and gasoline futures markets last week."
The U.S. price for crude oil dipped below $90 per barrel last week, its lowest settlement price in six months.
The downturn in oil prices has largely been driven by market concerns that the global economy is heading for a recession. The price drop accelerated last week after weekly EIA supply and demand numbers showed gains in domestic crude oil and gasoline supplies. The same EIA report measured implied gasoline demand at nearly 13 percent below year ago levels - thus applying further downward pressure to prices at the pump.
"Gas prices have certainly taken a downward turn," LaDoucer continued. "North Dakota motorists can find gas for under $3.70 at some stations and the state average could drop to that price point in the next week or two. It's should be remembered, however, that the fuel market has proven to be extremely volatile this year, and trends can change quickly if something reignites concerns about fuel supplies."