Gasoline prices have again slipped in Oklahoma, reaching an average of $1.92, a drop of 2 cents over the past week, according to figures compiled by AAA Oklahoma.
The organization says Oklahoma is tied with Arkansas for the fifth lowest average price in the nation. Fourteen states have averages under $2 a gallon with South Carolina at the lowest with an average of $1.84. The average in Missouri is $1.92 while in Texas, the average is $1.98.
“Gas prices across most of the country continue to slide due to abundant supplies,” said Chuck Mai, spokesman for AAA Oklahoma. “More than 40 percent of gas stations nationwide were selling gasoline for 42.00 per gallon or less compared to just a handful on this same date last year.”
He said less than one percent of stations across the country are selling gasoline for more than $3 a gallon compared to 13 percent one year ago.
Of the 15 cities checked by AAA Oklahoma, all have averages technically less than $2 a gallon. Altus is highest with an average of $1.998 followed by Stillwater at $1.994 a gallon.
Muskogee is cheapest with a 5-cent drop in the past week to reach an average of $1.80 a gallon. Tulsa’s average is $1.84 while the average in Oklahoma City is down 2 cents to hit $1.90.
Here is what AAA Oklahoma says about the gasoline and oil situation:
The strengthening U.S. dollar coupled with ample domestic oil supplies have contributed to West Texas Intermediate crude oil prices testing lows not seen since spring. WTI is priced in U.S. dollars, so as the dollar strengthens, the price of oil becomes relatively more expensive for those holding foreign currencies. This makes oil a less attractive investment and helps reduce prices. If this trend continues, WTI could drop below $40 per barrel for the first time since April 18. At the close of Friday’s formal trading session on the NYMEX, WTI had recovered slightly from Thursday’s multi-month low to settle 46 cents higher at $41.60 per barrel.
National pump prices have fallen 50 of the past 51 days for a total of 25 cents per gallon. The national average price for regular unleaded gasoline has declined to $2.13 per gallon, which is the lowest level in the past 100 days and the lowest price for this date since 2004. Today’s price is three cents less than one week ago, 15 cents less than one month ago and 52 cents less than the same date last year.
With gasoline supplies high and oil prices low, pump prices are likely to remain relatively cheap through the remainder of the summer and into the fall. While a record number of American motorists have hit the road for summer travel, sharply lower gas prices have not triggered the sharply higher gasoline demand that many analysts had anticipated. This was evident in last week’s Energy Information Administration report, which revised the mark for U.S. gasoline demand in May lower by 213,000 barrels per day to 9.436 million. While lower than first reported, this demand number was still the highest total on record for the month of May.