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Oil Reserves Helping Keep Gas Prices Down
California at $2.98 a Gallon, Down 4 Cents from Last Month, Says AAA
Published on Nov 10, 2009 - 11:31:37 AM
By: AAA
Walnut Creek, Calif., November 10, 2009 – Consumers are rejoicing as gas prices are dropping all across Northern California, according to the latest report from AAA Northern California. In the metro areas where AAA tracks gas prices, most areas have seen average prices drop below the $3.00 a gallon mark. All but one of those areas has seen decreases in its average price since AAA's last survey.
"When it comes to oil and gas prices, a balancing act of sorts is currently in effect," said AAA spokesperson Matt Skryja. "A weak dollar is spurring investors to buy oil, which is helping to drive up the price per barrel. However, vast oil reserves and weak consumer demand are helping to keep the prices at the pump relatively stable for motorists across most of Northern California."
California's average gas price is the third highest among all 50 states according to the latest report from AAA, which tracks gasoline prices as a service to consumers. The Golden State's average for a gallon of regular unleaded gasoline is $2.98, down 4 cents since last month's report on October 13. For perspective, that's 43 cents more than California's average price on this date last year, when it was $2.55.
Northern California gas prices are now averaging $2.97, down 5 cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $3.10, a 6 cent drop. The national average price of $2.66 is up by 18 cents, which is 42 cents more than the national price on this date last year, when it was $2.24.
Although oil prices have slowly crept higher recently, AAA analysts don't believe that consumers will see those prices make any huge jumps in the near future (barring any unexpected events). Additionally, high unemployment rates continue to dampen the markets. The latest reports show the national unemployment rate has climbed past 10 percent, the highest it has been since 1983. Given that economic growth leads to increased oil and gasoline demand, the unemployment data doesn't appear to be a driving force behind increasing oil prices.
The least expensive average price in Northern California can be found in Chico where unleaded is $2.84. Of all the metro areas in Northern California where gas prices are tracked by AAA, Tahoe City has the highest average price at $3.22, which is also the highest price in the lower 48 states. The least expensive gasoline in the country is found in Casper, Wyoming where the average price of gas is $2.39. Wailuku, Hawaii, holds the crown for the highest average price in the nation, with $3.70 per gallon.
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