Pittsburgh-area motorists continued to enjoy the fall of crude oil prices this morning, as a gallon of gasoline averaged about $2.82 across stations southwestern Pennsylvania, according to price-tracking website GasBuddy.com.
That’s a decline of nearly 5 cents a gallon in the last week and about 14 cents a gallon in last month. Gasoline prices now sit about 89 cents a gallon less than they did one year ago.
The price for a barrel of crude oil, which accounts for roughly two-thirds of the retail price of gasoline, tumbled from about $60 a barrel in late June to $46.05 Monday morning at the West Texas Intermediate benchmark. Gasoline prices have mirrored that decline nationally, as U.S. prices have fallen 15 cents a gallon from mid-June.
Prices in 47 out of 50 states declined in the last week, noted Patrick DeHaan, GasBuddy senior petroleum analyst in the site’s weekly press release. The national average for a gallon of gasoline is its lowest summer price since 2009.
“A sharp drop in the price of crude oil over the last several weeks has resulted in big declines at the gas pump,” Mr. DeHaan said.
Low oil prices are expected to persist. Multinational oil companies finished a second quarter with dismal earnings and slashed capital budgets. Royal Dutch Shell announced last week it would lay off 6,500 people in response to the downturn.
This article was written by Daniel Moore from Pittsburgh Post-Gazette and was legally licensed through the NewsCred publisher network.