Susquehanna Valley gas prices fell another six cents in the past week, dropping to $2.819 a gallon, according to AAA East Central's Fuel Gauge report.
On the national front
Monday's average of $2.67 per gallon is the least expensive since Feb. 23, 2010. The national average has dropped a dime from one week ago, 27 cents from one month ago and 60 cents per gallon from the same date last year.
The average price for retail gasoline historically declines from fall into winter due to a number of factors including decreased demand. Consumers can expect to see the price at the pump tick lower as we approach the New Year, however, crude oil would have to fall by another $25 to $30 per barrel to cause the national average to drop below the $2 per gallon threshold this winter, which remains unlikely.
The price of oil accounts for approximately two-thirds of the price at the pump, and a $10 per barrel drop in the price of crude oil results in about a 25-cent drop in retail prices for motorists.
Global oil markets are still struggling to find a bottom since the Organization of Petroleum Exporting Countries' (OPEC) decision to sustain production levels. In an attempt to protect its share of the global market, Saudi Arabia, OPEC's second largest member, is sustaining its recent price cuts and is offering barrels of oil at prices not seen in at least 14 years.
This move could possibly put pressure on U.S. crude production, which is at its highest level in 30 years, and has been a leading factor for the global oil market's increase in supply. The new oil production that has come online in the U.S. in recent years is generally understood to cost more to get out of the ground than oil produced in Saudi Arabia.
If oil prices continue to fall, this more expensive U.S. production could stop being profitable, which could take some production offline until prices increase again.
At the close of formal trading on Friday, West Texas Intermediate (WTI) settled below $66 per barrel for the first time since 2009, down 97 cents at $65.83 per barrel.
(AAA East Central is a not-for-profit association with 82 local offices in Kentucky, New York, Ohio, Pennsylvania and West Virginia serving 2.7 million members.)
This week's Susquehanna Valley average price - $2.819
Average price during the week of Dec. 3, 2014 - $2.877
Average price during the week of Dec. 10, 2013 - $3.454
The following is a list of the average price of unleaded self-serve gasoline in various areas:
Lewisburg - $2.758
Mifflinburg - $2.860
Milton - $2.791
Selinsgrove - $2.806
Shamokin - $2.875
Sunbury - $2.823