The U.S. average retail price of regular gasoline decreased 13 cents from last week to $2.51 per gallon on August 31, 2015, 95 cents per gallon less than at the same time last year. The Midwest price showed the largest decline, down 20 cents to $2.47 per gallon. The West Coast price decreased 12 cents per gallon to $3.16 per gallon. The Gulf Coast and East Coast prices were both down nine cents per gallon, to $2.20 per gallon and $2.34 per gallon, respectively. The Rocky Mountain price was down five cents to $2.77 per gallon.
The recent rise in domestic crude oil production from 5.4 million barrels per day (b/d) in 2009 to 8.7 million b/d in 2014 and the prospect of continued supply growth have sparked interest in the question of how a change in current policies, which restrict but do not ban exports of crude oil produced in the United States, might affect markets for both crude oil and petroleum products over the next decade.
The United States saw a huge average fall this week for retail gasoline prices, falling 13 cents to $2.41 this week, bringing the 27-day average price to $2.53. The Midwest region saw the largest fall this week of 19 cents to $2.43, while the Rocky Mountain region saw the smallest decrease of only five cents. The Gulf Coast still has the lowest gas prices in the country at $2.19.
Ohio's gas prices fell 30 cents this week to $2.35, while Minnesota dropped 22 cents to $2.42. The lowest gas prices are in Texas at $2.21.
Dairy margins were mixed over the last two weeks of August, weakening slightly in nearby periods while strengthening in the first half of 2016, according to the latest CIH Margin Watch report from Commodity & Ingredient Hedging, LLC.
Retail diesel prices continued to fall this week, seeing an average decrease in the US of five cents to hit $2.51. The 27-week average is now at $2.80.
The New England region saw the largest fall of seven cents to $2.67, bringing the 27-week average price to $3.05. Despite the large fall, the region does not have the lowest diesel prices-- the Gulf Coast currently holds that position at $2.38. The Rocky Mountain region saw the smallest drop of only three cents.
Crude oil prices have once again been making headlines, dipping into the upper $30s and lower $40s per barrel. In an article last week (farmdoc daily, August 19, 2015), it was shown that real (inflation-adjusted) prices of crude of oil and gasoline have fallen back to levels prevailing more than a decade ago.