Gas prices are falling across the country ahead of the busy Thanksgiving travel holiday as concerns about oversupply have hit the U.S. oil market
A total of five states – Oklahoma, Louisiana, Missouri, Texas and Ohio – have at least one gas station selling gas for less than $2 per gallon, according to GasBuddy analyst Patrick DeHaan. Roughly 50 to 75 gas stations are currently selling below $2 a gallon, a number that DeHaan expects to grow by the Thanksgiving holiday.
“With the large drop in crude oil prices lately, we're likely to see stations pass along the lower prices as they fill their own tanks with the cheaper fuel,” DeHaan told FOX Business. “The sub $2 club will likely grow to 100 to 300 stations by Thanksgiving, perhaps more, mainly in low-tax states in close proximity to the Gulf Coast, where the majority of refiners operate.”
Oil prices finished slightly higher in trading Wednesday, snapping a record 12-sessions streak of declines. The market has sank amid concerns that production has outpaced demand. A drop in crude oil prices has sent the national average gasoline price lower -- the national average gas price stood at $2.67 per gallon as of Wednesday, according to AAA, down from nearly $3 a gallon during Memorial Day weekend.
GasBuddy projects that most U.S. states will see gas prices fall by as much as 15 cents per barrel by Thanksgiving. The firm advised consumers to wait until closer to the holiday before filling up their tanks.