Gas Prices Dropping

Gas Prices Dropping

Gasoline prices have dropped to the lowest level seen in the past year. The average was $3.254 per gallon this past Monday. That is a drop of almost 10 cents from the previous week.

Consumers were accustomed to prices as high as $3.878 during the month of September, but retail costs have dropped 16% since then. Domestic crude production is rising. The United States is using hydraulic fracturing, or fracking, to increase domestic production. The process uses pressurized water to force gas and oil from shale rock.

Gas consumption in the United States is down from its peak which occurred in July 2007. Then the demand was 9.68 million barrels a day. More recently it hit an 11 year low of 8.04 million.

The United States is experiencing very low prices compared to some other nations. This past October, gas cost Norwegians $10.47 per gallon. Turkey, Israel, the Netherland and Italy all had prices on the high side, coming in at over $9 per gallon. On the other side of the spectrum, Venezuelans paid only 9 cents a gallon per the Bloomberg ranking of 60 nations.

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