With the summer months brining on a higher demand for gasoline, new research from the Lundberg Survey reported the average U.S. price of regular grade gasoline has declined by 9.04 cents per gallon in the two weeks ending on July 25.
The Lundberg Survey reached out to nearly 2,500 U.S. gas stations and found the average price per gallon was $3.5795, which is another part of the 12-week period of low price gasoline in the nation. From the price point a year ago, the current cost per gallon is 9.51 cents less, the research reported.
Refineries creating lower prices
While the price per barrel of crude oil in the U.S. has declined after the Iraqi political tension helped it increase nearly a month ago, the oil prices have had little effect on the costs of gasoline. Instead, the price drop has come from the nation's oil refineries since they have been lowering wholesale prices to keep rates high and “chase sales,” CSP Daily News reported.
Refinery plants in the Midwest have helped keep the price of gasoline low because their production and processing rates on July 11, reached their highest levels since 1989, Bloomberg reported.
“It's really a mid-summer gift,” said Trilby Lundberg, the president of Lundberg Survey, according to the source. “Refiners have been on a kick to run more crude, run at high rates and to cut price.”
According to Lundberg Survey, the highest gasoline prices in the lower 48 states were in San Francisco, which had an average of $4.03 a gallon. The lowest price was located in Tulsa, Oklahoma, which averaged around $3.23 a gallon.
Gasoline futures show potential
Even though summer months usually drive down the total crude inventories because of the high demand, the actual production is increasing instead of dropping, CSP News reported. The total gas futures on the New York Mercantile Exchange (Nymex) declined by 4.32 cents or around 1.5 percent to total $2.8653 a gallon in the last two weeks ending on July 25, Bloomberg reported.
The total demand for gasoline over the last four weeks ending on July 18 was 8.988 million barrels per day, which was a 0.6 percent decrease from the previous year's reports.
With production remaining high, original equipment manufacturers can rely on Broadwind Energy for several maintenance and precision gearing needs for oil and gas wells.