Why gas prices are dropping ahead of the holidays
by Zack Budryk - 12/11/23 4:37 PM ET
Gas prices dipped significantly over the weekend, bringing relief for drivers ahead of the holiday.
As of Monday, the national average stands at $3.15 per gallon, according to AAA. That’s 5 cents less than last week, which was itself 20 cents down from a month ago.
One of the driving forces in the decline is the aftermath of the Nov. 30 meeting of the OPEC+ oil cartel, said Andy Lipow, president of consulting firm Lipow Oil Associates.
A subsequent decline in crude oil prices “showed that OPEC+ is struggling to balance oil supply and demand in light of the surprising increase in supply from the U.S., Brazil and Guyana, as well as disappointing demand from China,” Lipow said.
Those declines have meant “good news for the consumer” at the pump, Lipow said, and prices may drop a few cents more over the week.
China, meanwhile, was expected to see a surge in demand that accompanied the lifting of COVID-related restrictions, but despite an early spike, Chinese refiners have recently cut back on their processing rates, Lipow said. A Bloomberg survey of industry analysts and consultants projects Chinese oil demand will decline to about 500,000 barrels per day next year, about a third of the demand recorded over the past year.
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https://thehill.com/policy/energy-environment/4354288-gas-prices-dropping-holidays-opec/?email=467cb6399cb7df64551775e431052b43a775c749&emaila=12a6d4d069cd56cfddaa391c24eb7042&emailb=054528e7403871c79f668e49dd3c44b1ec00c7f611bf9388f76bb2324d6ca5f3&utm_source=Sailthru&utm_medium=email&utm_campaign=12.12.23%20%E2%80%93%20Energy%20%26%20Environment%20CMS%20%E2%80%94%20RF%20-%20BH
