GasBuddy Sees Turbulent October for Pump Prices

With global crude oil prices plunging to their lowest levels, GasBuddy is predicting further decreases in the months to come.

Global crude oil prices plunged to their lowest level in 27 months on the last day of September,thereby strengthening the case for the cheapest U.S. gasoline prices in years GasBuddy analysts noted today. 

But the popular price-shopping app believes that October will only offer a sneak preview of much lower pump prices likely to occur in November.

“We expect nationwide gasoline prices will move to between $3.10/gal and $3.20/gal in November and December,” notes GasBuddy chief oil analyst Tom Kloza. “The cheapest numbers are likely to occur when refining production recovers. The actual bottom in this current down-cycle may not occur until January.”

In addition to much cheaper crude oil costs, a huge drop in ethanol prices has contributed to the autumn downtrend. Thanks to the cheapest corn prices since September 2009, the value of ethanol plunged below $1.60/gal this week, representing the lowest price since July 2010. Since most finished gasoline prices reflect a 10 percent ethanol mixture, the cheap ethanol has cut 10cts gal or more off wholesale prices for motor fuel.

For even more statistics: http://media.gasbuddy.com.


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