Local gasoline prices hit six-week low

Gasoline prices Monday dipped to a six-week low, a move that could lead to savings for consumers during the summer driving season.

Gasoline prices usually spike in the spring when refiners temporarily shut down for maintenance and conversion to produce cleaner-burning, more expensive summer blend fuels.

“Then once June 1 hits, almost like clockwork, the price begins to come back down as far as retail gasoline prices are concerned,” AAA Oklahoma spokesman Chuck Mai said.

This year, however, prices have fallen instead of increasing during the spring transition season.

“We have a lot of new oil coming in, and the transition to the cleanerburning summer blend fuels has been very smooth,” Mai said. “It’s gone extraordinarily well this spring. I think we’re at the tail end of the transition period.”

When the refineries shut down for maintenance, several often are found to need more extensive repairs. Fewer large-scale problems have been reported this year.

At the same time, domestic oil production and drilling activity have been increasing.

“We have a huge stockpile and demand that has not really hit its stride yet,” Mai said. “Demand is certainly on the horizon, but it’s not here yet. With the lower crude prices, we’re seeing pretty good pump prices for consumers.”

Without the regular spring spike, prices might not fall over the summer

like they normally do, Mai said.

“We’re at such a low point already, I think we will see prices stay in this range, give or take a dime or 15 cents, unless something happens domestically or worldwide to impact supply or distribution. But nothing like that is on the horizon.”

The average price for a gallon of regular unleaded gasoline in Oklahoma City was $2.04 on Monday, down 2.5 cents over the past week and almost 11 cents from one month ago, according gasprices.aaa. com. The price still is up 10 cents from one year ago.

Oklahoma boasts the second lowest statewide average price, behind only South Carolina.

Nationwide, Monday’s average was almost $2.35 a gallon, down four cents both over the past week and from one month ago. The national price is up 13 cents from one year ago.

Gasoline prices have declined over the past week in every state except Alaska, where prices increased by 1.1 cents per gallon, according to GasBuddy.com.

“Gasoline prices in much of the country are eroding at a time of year when such a downward fall is anything but par for the course,” Patrick DeHaan, a senior petroleum analyst for GasBuddy, said in a statement. “Prices now lay on the fringe of falling under the same point as last year as this year’s usual spring rally has been the weakest in recent memory.”

There’s still time for prices to climb before the typical peak following Memorial Day weekend. But gasoline storage levels are strong, and oil price markets have declined steadily since the first of the year.

Leaders from the Organization of Petroleum Exporting Countries and other large oil exporters agreed late last year to cut production in an effort to drive up prices. OPEC members are scheduled to meet again later this month to discuss whether to continue the cuts.

“OPEC seems inclined to want to dig in its heels on oil production cuts,” Mai said. “If OPEC members can continue to adhere to their own self-imposed quotas, we may see crude oil prices start to rebound a bit in June or July.”

Still, relatively low gasoline prices this time of year and large domestic oil and gasoline stockpiles signal savings for consumers throughout the summer, Mai said.

“Things are looking good for that great American road trip,” he said. “It’s going to be a great time for family vacations on the highway.”