Now might be a good time to fill up your gas tank.
Drivers are getting some relief at the pump, with gasoline prices having dropped seven straight weeks. The national average for a gallon of regular gas now hovers just north of $3.21, the lowest since December 2011, according to the AAA.
“Anything helps, and if gas could go lower, that would be great,” said Peter Piriyakul, 37, of Los Angeles.
The worker for Dish Network said that if the price to fill up keeps falling, he may splurge more on dinners out or better gifts for family and friends. “You don’t always notice how much it goes up, but it really adds up,” he said.
U.S. oil production grew in October to the highest level since March 1989, according to Bloomberg. Brent crude prices have dropped by about $10 a barrel since late August, and have lingered at about $105 a barrel this past week.
In addition, the cost of gas traditionally eases toward the end of the year, because the peak driving season has ended and there is a seasonal shift to a cheaper winter blend of gas.
“There are seasonal factors involved. You have lower demand during cooler months,” said Patrick DeHaan, senior petroleum analyst at GasBuddy.com.
DeHaan predicted that prices could continue to fall until mid-December.
Industry watchers say demand for gas will drop in the coming years, thanks in part to more fuel-efficient hybrid and electric automobiles.
“Instead of getting only 20 miles, they are getting 22 or 23 miles a gallon,” said Fadel Gheit, senior energy analyst for Oppenheimer & Co. “Between 20 and 22 miles, that is a 10 percent drop in gasoline consumption.”
The decreased likelihood of a U.S. military strike in Syria has also calmed global oil markets, analysts said. Although the country is not a big oil producer, there were worries that ramped-up U.S. engagement in the conflict could fan further unrest in a region already plagued with turmoil.
Already, unrest in countries such as Egypt and Syria has inflated global oil prices.
“Unfortunately for the U.S., it will remain inflated, because the situation continues to [go] from bad to worse” overseas, Gheit said.
Prices could still inch back up toward the end of the year if any of California’s refineries experience a disruption.
The uncertainty has Frank Bar fuming.
The Los Angeles real estate agent, who drives a gas-guzzling 1968 Buick convertible, said he’s seen gas prices shoot up about $2 a gallon in the past four years. Many motorists are so used to higher costs, he said, that even a little dip makes them irrationally happy.
“Everyone’s like, ‘Wow, prices are so low,’ ” said Bar, 47. “It’s actually disgusting. Prices shouldn’t be this high.”