Gasoline prices in the Pikes Peak region are falling faster than normal this fall, and the drop is expected to continue. Since last month, the average price of a gallon of gas in Colorado Springs has fallen 39 cents, according to price tracker Gasbuddy.com, and at some local stations, it's below $3 per gallon.
One month ago: $3.55
One year ago: $3.32
One month ago: $3.59
One year ago: $3.43
One month ago: $3.39
One year ago: $3.35
A glut in oil supplies and decreased demand worldwide are driving prices down throughout the U.S. The nationwide average fell to about $3.18 on Tuesday, down more than 20 cents from a month ago, according to data from Gasbuddy.com. The average in Colorado Springs is even lower at about $3.16 per gallon.
Decreasing prices in the fall are not unusual, said Patrick DeHaan, senior petroleum analyst for GasBuddy.com. But the cost of gas is being driven even lower by an increase in U.S. oil production and a price war between members in the Organization of the Petroleum Exporting Countries. “There's a laundry list of issues putting downward pressure on crude oil prices,” DeHaan said Tuesday. “I can't see anything pushing prices higher.”
On Tuesday, the International Energy Agency reduced its forecast of global oil demand for the year by 200,000 barrels per day, from September. OPEC's crude oil supply rose to a 13-month high last month, the organization reported, led by increased production in Libya and Iraq. Increases also occurred in non-OPEC producers, the IEA report said. In recent years, volatility in oil producing countries and sluggish economic worldwide numbers have pushed the price for oil higher, but increased domestic production combined with decreased demand have factored into prices moving downward, DeHaan said.
On Wall Street on Tuesday, crude oil prices fell by more than 4 percent, to $81.84 a barrel, the lowest price since June 2012, The Associated Press reported. If prices drop too low, DeHaan said, it could mean domestic oil production might not be "economically viable" in some places across the country. Until then, however, the drop in gas prices is a welcomed sign for consumers, DeHaan said, as well as for the gas stations, like Sinclair.