For the first time this year, prices back off at the pump
The cost of gasoline in Houston and across the country fell for the first time this year as crude prices slid amid reports of higher production and inventories.
The average cost of a gallon of regular unleaded in the Houston area dropped about 3 cents last week to $2.29, while the national average fell about 4 cents to $2.57 a gallon, according to GasBuddy, which tracks fuel prices nationwide.
Still, fuel prices in Houston are more than 22 cents higher than they were at this time last year, when oil prices were much lower. Nationally, prices have increased by about 29 cents during the same period.
Oil prices are about $6 a barrel higher than they were a year ago. Gasoline prices across the country had steadily climbed for weeks alongside crude oil prices, which peaked at $66 a barrel at the end of January. GasBuddy earlier this month predicted that average gasoline prices could increase by as much as 50 cents a gallon by Memorial Day.
Last week’s price drop follows a U.S. Energy Department report that domestic oil production had surged in January to a record 10.2 million barrels a day. Crude oil, gasoline and distillate inventories also climbed, raising investor concerns about oversupply.
As a result, crude oil prices fell below $60 a barrel for the first time this year, settling at $59.20 a barrel on Friday. Crude on Monday rose for the first time in six trading sessions, settling in New York at $59.29 a barrel, up 9 cents.
“These factors have opened the door for perhaps a brief window of relief at the pump that may last for several weeks,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.