Gasoline prices have fallen for 18 consecutive weeks in South Dakota, tumbling to an average of $1.703 for a gallon of regular today, according to FuelGaugeReport.AAA.com.
The state price has dropped seven cents in the past week and is at its lowest point since before 2008 due to weak demand and crude oil inventories that are at their highest level for this time of year in nearly eight decades.
“To be honest, we’re just not sure if gas prices have hit rock-bottom yet,” said Marilyn Buskohl, spokeswoman for AAA South Dakota. “Gasoline demand typically begins to increase in February, reaching its peak in August. Plus, this month also marks the beginning of the spring refinery maintenance season. The combination of increased demand and reduced supply often leads to upward swings in the price at the pump. We’re watching for that to happen again this year.”
Today’s, Feb. 9, national average gas price of $1.73 per gallon is 45 cents below the price one year ago and $1.08 less than the 2015 peak price reached this past June. The U.S. pump price average has fallen six cents in the past week and 23 cents over the last four weeks.
Slower-than-expected growth in China, a strengthening U.S. dollar, and ongoing speculation about what, if any, deals the Organization of Petroleum Exporting Countries may attempt to broker on production are all weighing on the global oil market. Market fundamentals remain skewed due to oversupply and geopolitical tensions, including those between OPEC member countries, have had little impact on price due to the market’s current supply/demand imbalance.
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