Gasoline Prices Fall
July 30, 2007
The price of gasoline at US pumps has fallen to an average of $2.88, down a substantial 17 cents from earlier in the month, with increasing supply helping to curb the rising prices.
The figure is taken as a national average for self-service, unleaded petroleum at retail stations, and reflects an overall fall in the price of manufacturing gasoline, and increasing efficiency in US refineries to maximise output.
The figures were averaged at 27 July, at which point the price sat at $2.8843/gallon. This is contrasted against the results of July 13, in which the average came out at $3.0577, after US refinery issues led to decreased capacity.
Now, refineries across the US are re-establishing output, hence flooding the market with the supply it so desperately craves to maintain stable prices and fuel the US economy.
Oil refinery problems in the US are partially to blame for world oil prices rising, according to oil cartel OPEC, who claim that outages have led to the spiraling prices of recent weeks.
Now that capacity has been restored, prices have fallen by around 30 cents a gallon from the May 18 high of almost $3.20, which highlighted a major struggle for fuel throughout the US, and has almost certainly contributed to poor economic performance over the last few months.
It is thought that prices will remain fairly stable for the time being with a relatively balanced demand matching supply, despite remaining widespread variations in price from the average.
Prices range wildly throughout the US, from as little as $2.65 a gallon in Cleveland, Ohio, through to almost $3.30 in Chicago, which boasts the highest average price for self service unleaded gasoline in the United States.
Many analysts are predicting further price reduction later on this year, when OPEC is expected to step up worldwide crude oil production.