Gas Watch: Prices continuing to drop as crude price dips, supplies remain high

Talk 1370 Newsroom
February 06, 2020 - 8:29 am
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AUSTIN (Talk1370.com) -- Near-record gasoline supplies are continuing to push down the price Austinites are paying at the pump, according to the latest numbers from AAA Texas.

The average price for a gallon of regular unleaded fuel in the Austin area this week is $2.12, down five cents from last week and up 15 cents from a year ago. Drivers across the state and country are seeing similar declines, with the statewide average down five cents to $2.11 and the nationwide average down four cents to $2.45 this week.

Of the major metropolitan areas surveyed in Texas, drivers in Midland are paying the most on average at $2.38 while drivers in Sherman/Denison are paying the least at $1.96 per gallon.

"Cheaper crude and healthy stock levels mean motorists can expect prices to continue to decline this month," said Daniel Armbruster with AAA Texas. "There may be some volatility with crude oil prices, however, as many market analysts will be watching the economic impact of the coronavirus and whether the Organization of Petroleum Exporting Countries (OPEC) will consider further oil production cuts."

Crude oil prices are about $10 less a barrel compared to the beginning of the year. Plus, market analysts cite U.S. gasoline stocks hovering around all-time highs as a contributing factor for cheaper fuel prices.

Another sign of declining prices - gas can be found for less than $2 a gallon at stations in every state in the South and Southeast except in Florida. That number is expected to increase next week as prices continue to drop.

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