US gasoline slips below $2; at 6-year low

The average gasoline retail price in the US fell to $1.999 a gallon and is hovering at over six-year low level. The oil supply glut continues to keep the pressure on the price. The Organization of Oil Exporting Countries (OPEC) has decided to not to reduce its production level to keep up its market share.

This has further pulled down the crude oil price lowest since 2009. The overproduction and lower demand have resulted in lower prices. The retail gasoline price may fall further if pressure on global oil prices continues.

Americans can have extra cheaper drive this holiday season as gasoline price tumbled to six-year low below $2 per gallon. The average retail gasoline price fell to $1.999 a gallon in New York, according to data from GasBuddy Organization, which tracks price movements in Gaithersburg, Maryland.

According to a report by Bloomberg, the average gasoline retail price was in November at $2.11 and $2.44 a year ago. The West Texas Intermediate (WTI) crude oil price slips to the lowest level since 2009.

The US refineries produced 9.83 million barrels a day in November. The production in November rose 2.3 percent, according to American Petroleum Institute. The average gasoline price fell to $1.80 a gallon in Texas.

San Antonio Express News reports that Americans saved $100 billion on fuel in 2015. This makes per capita savings on fuel at $350, according to Michael Green, a spokesman in Washington for AAA. The oil price is falling every day while demand is picking up.

The oil price fell to lowest since February 2009, while demand rose to highest level since 2007, as per data from Energy Information Administration (EIA).

Patrick DeHaan, a senior petroleum analyst at GasBuddy, said: "Low oil prices tied to overproduction and to lower seasonal demand. These are main catalysts for the decline. America is the world's largest oil consumer and in the winter months demand is reduced."

Energy analysts opine that the combination of low price, the rise in demand and healthy economy is seen in the US after a long time, as reported by Gulf News. The retail average gasoline price in the US rose over $3.5 a gallon in 2014 came to near $2 level in early 2015. It rose above $2.5 in mid-2015 before slipping below $2 now.

The West Texas Intermediate crude price fell 68 percent during the past 18 months. Consumers and refiners are benefiting from the crude oil price drop. Taking advantage of low oil price, refiners are encouraged to produce at a record level. The oil price is expected to be under pressure in 2016 also. After the Opec's refusal to cut production level, the WTI price fell to $34.73 a barrel on last Friday and this indicates the lowest level since February 2009.

The average gasoline price eased by 4.02 cents to $2.02 a gallon on 18 December. Trilby Lundberg, President of Lundberg Survey Inc, said states such as California have more consumption of gasoline while Montana and other states have less consumption of gasoline.