San Antonio's average gas price continues to fall as the oil market is roiled by concerns about shortages and falling production from several OPEC nations, News Radio 1200 WOAI reports.
San Antonio's average gas price this holiday week is $2.53 a gallon, and San Antonio is tied with Wichita Falls for the lowest gas prices in the state.
Ironically Midland and Odessa, which are in the heart of the country's biggest oil field, the Permian Basin, have the highest gas prices in the state, and are the only places where the average is over $3 a gallon.
But Joshua Zuber of AAA Texas says we may not have falling gas prices for long.
"With gasoline demand, we are still at an all time high level," he said. "We also have some geopolitical things going on with Venezeula and Iran."
Venezuela's oil production has fallen to essentially zero, even though it is the country with the largest proven oil reserves in the world, due to mismanagement by the government. Iran, which is the world's sixth largest oil producer, is facing U.S. imposed sanctions which will prevent its oil from being sold on the world market.
In addition, Libya and Nigeria are experiencing supply problems, all of which has led to a major drawdown in world oil supply.
U.S. production is ramping up, but it is still being hurt by a shortage of pipeline capacity, needed to get that oil to refineries. Zuber says there is also more U.S. crude being exported today, and that is also cutting into supplies.