Slide in oil leads to lower gas prices

North Dakota motorists can expect gasoline prices to fall as oil prices and seasonal demand for gasoline wane.

Today’s national and state averages for a gallon of regular gasoline is $2.21. 

The national average is down 4 cents from one month ago. The North Dakota average is down 7 cents, with about 20 percent of gas stations selling gas for under $2 a gallon.

While the averages are down, the price of a barrel of crude oil has retreated even further. In the past month, oil is down about $7. A $1 drop in crude equates to about a 2.4 cent drop in the price of gasoline. 

Without a jump in the price of oil, the lower price will ultimately be reflected in what consumers pay at the pump.

Oil prices tumbled to a six-week low last week due to an unexpected record-high build in domestic crude oil inventories.

Also impacting crude oil prices are lowering expectations that OPEC will agree on a production freeze in effort to reduce global oversupply. OPEC has until a scheduled Nov. 30 meeting to develop a framework to curb further declines in the price of oil.

Share this post