Indications that the Worst May be Over at The Gas Pump

There are indications that the worst has passed at the gas pump, News Radio 1200 WOAI reports.

Gasbuddy.com reports the average price of gas in San Antonio fell a little more than two cents in the past week, after more than two months of sometimes steep increases, to settle at an average $2.67.

The national average price for gas also fell last week, to a national average of $2.94.

Both these averages are sharply higher than June 4 in previous years.  Last year at this time, for example, we were paying $2.15.

But prices are still lower than the average for this time of year.  Over the past thirty years, gas prices in early June have average about $3.30.

Helping drive down prices is a retreat by West Texas Intermediate crude oil from four year high prices seen over the past two weeks, driven down by the Saudis indication that they are willing to increase pumping limits.

Texas is also struggling to deal with a shortage of pipelines which is depressing production in the Eagle Ford and Permian Basin, simply because there isn't enough pipeline capacity to move the crude oil that is being produced.

"Prices remain well above their year ago level, costing the country $228 million more every day versus a year ago," Gasbuddy senior analyst Patrick DeHaan said. "Moving forward, all eyes remain on OPEC and their coming meeting to see if they'll push oil prices higher, or if they'll allow a respite for the summer driving season."

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