A “tug of war” between U.S. and overseas oil producers has kept gas prices steady, but many analysts are asking how long it can last.
Average retail gasoline prices in Arkansas have fallen 1.5 cents per gallon in the past week, averaging $2.07 a gallon on Monday, according to GasBuddy’s daily survey of 1,826 gas outlets in Arkansas. The average price per gallon was $2.09 in Oklahoma, putting each state in the top 10 for cheapest gas in the nation where the average price is $2.29 for a gallon of regular unleaded.
The average nationally has fallen 0.3 cents per gallon in the last week. The oil market saw more losses on Monday to trade near a four-month low after increased drilling activity in the U.S. indicated a strong rise in production was coming.
U.S. crude futures settled down 56 cents, or 1.15 percent, at $48.22 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 14 cents, or 0.27 percent, at $51.62 a barrel on ICE Futures Europe.
The AAA Fuel Gauge Report this week noted “a long-term bearish sentiment continues to underscore the global oil market as speculation about the balance between OPEC (Organization of Petroleum Exporting Countries) cuts and U.S. production drives the market.”
“While some states did see minor increases, the bulk of the country saw prices moving lower at a time of year that such a move is about as likely as a 16th seed team winning the NCAA tournament,” DeHaan wrote at GasBuddy.com. “While the drop at the pump is most welcome, we’re nearly guaranteed to see prices rebound well in time for…
click here to read more.