Thanksgiving gas prices cheapest in seven years

ALBANY — Gas pump prices for the just completed Thanksgiving holiday period were at their lowest average in seven years, and the national average could dip to below $2 per gallon before Christmas, some experts are predicting.

But a sub-$2 national average isn’t a sure thing.

“Gas prices have been falling at a rate of about a half-cent a day, and if that pace continues, the national average will drop below $2 in the next two weeks,” said Mark Jenkins, a spokesman for AAA — The Auto Club Group. “But there is potential for the pump price plunge to slow after oil prices climbed a few bucks last week.”

The price of oil averaged $42.34 last week — $1.52 higher than the week before. West Texas Intermediate oil closed as low as $41.71 and $43.04 at its peak for the week, AAA officials noted.

AAA’s Daily Fuel Gauge Report had the average price nationally for a gallon of gas at $2.05 on Thanksgiving Day. It had dropped a penny by Monday. About 36 percent of U.S. gas stations were selling gas at below $2 on Sunday, Jenkins said.

AAA said an oversupply continues to be a dominant factor in keeping downward pressure on global oil markets, despite geopolitical tensions and military action between Turkey and Russia. Turkey is a gateway for crude oil via the Caspian Sea, and the most recent incident could lead to significant disruptions in supply, AAA experts said. But unlike previous years, the global market’s oversupply appears to be mitigating any real impact of the event on the global oil market.

Any surprises in the next week, particularly at the coming OPEC conference, could have a significant effect in the new year, an analyst for GasBuddy, which surveys U.S. gas stations daily, said Monday.

“Gasoline prices over the weekend and holiday were certainly quite cheap compared to prior years and other holidays this year,” said Patrick DeHaan, GasBuddy’s senior petroleum analyst. “While some cities and states may see some slight bumps at the pump in the days ahead thanks to the fallout of the downing of a Russian fighter jet last week, we’re more focused on the upcoming OPEC meeting this coming weekend and the potential implications from any major change in oil production.

“There are expectations that OPEC will continue to kick the can down the road and not change production levels. If there are surprises either way, it could definitely be felt at the pump and into 2016.”

On Monday, U.S. motiorists were paying 73.6 cents less for a gallon of gas than they were at the end of November 2014, according to AAA’s survey. In Georgia on Monday, the Daily Fuel Gauge Report had motorists in the state paying an average of $1.978, down 3 cents in a week and 71.3 cents below the average of $2.691 that Georgians were paying on Nov. 30, 2014.

Also on Monday, metro Albany had the second-lowest average price among the eight Georgia metro areas including in the AAA Daily Fuel Gauge Report. The $1.879 that Albany area motorists were paying Monday was a 6.3-cent drop from the previous Monday and 64.3 cents below the $2.522 Albany drivers were paying last year.

The lowest average for Georgia metro areas on Monday was in Macon, where motorists were paying $1.867. Savannah had the highest average at $2.033.