Saudi Arabia Lowers Price of Crude Oil Further Dropping Northern California Gas Prices

Last week’s move by the world’s largest oil exporter, Saudi Arabia, of lowering the price per barrel for crude oil sold to the United States, has added further momentum to Northern California’s already falling gas prices, according to a report released today by AAA.

With a gallon of regular unleaded gasoline being sold at an average of $3.19 this week in Northern California, including the San Francisco Bay Area, automobile drivers are experiencing gas prices, on average, 39 cents cheaper than last month, according to AAA Northern California spokeswoman Cynthia Harris.

“As consumers adjust to falling oil prices, California motorists can enjoy some of the lowest prices during a holiday season since 2009,” Harris said.

She said the highest recorded price ever registered in the state of California was $4.67 a gallon for unleaded regular gas in October 2012.

Average Northern California gasoline prices still come in 26 cents more expensive per gallon than the national average, according to AAA.

Today’s national average for regular unleaded gasoline is $2.93 per gallon, the lowest price since Dec. 4, 2010.

The national average price of gasoline has dropped for 46 days in a row, the longest consecutive decline since 2008, according to AAA.

Fueling the decline in gas prices has been the drop in crude oil costs, with prices for West Texas Intermediate down to $77.19 per barrel last week.

Analysts are likely to be pay close attention to an upcoming meeting of the Organization of the Petroleum Exporting Countries on Nov. 27 in Vienna, Austria and the cartel’s response to falling global gas prices, according to AAA.

Hannah Albarazi, Bay City News

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