Las Vegas gas prices trend down despite volatile oil market
Despite Mideast tensions causing volatility in world oil markets, retail gasoline prices in Las Vegas and the West continue to be on a downward trend that should bottom out between Thanksgiving and Christmas, says an industry expert.
“As air temperatures trend downward as we progress into fall, gasoline prices have seen another week of their own seasonal fall,” Patrick De Haan, head of petroleum analysis at GasBuddy, said. “The national average is on the cusp of falling to the lowest level since March, something that could happen this week.”
Gas prices for regular averaged $4.697 for a gallon in Las Vegas on Monday afternoon, down nine cents a gallon from a week ago and nearly 39 cents lower than a month ago, according to gasbuddy.com. One year ago the average price was $5.07 a gallon.
For the fifth straight week, the U.S. average price of gas dropped, falling 5.2 cents from a week ago to $3.50 a gallon on Sunday according to GasBuddy data. The national average is down 33.2 cents from a month ago and 26.8 cents per gallon lower than a year ago. The national average price of diesel has risen 3.8 cents in the last week and stands at $4.48 per gallon, 82 cents lower than one year ago.
Typically, oil and gas prices would spike with the potential for a wider conflict in the Mideast, but lower demand has so far tempered such a possible spike.
Oil market volatility has returned, pushing oil to $90 a barrel last week before declining again back under the key level, as tensions eased a bit and Israel allowed relief to move into Gaza, defusing a contentious situation. In early Monday trade, a barrel of West Texas Intermediate crude oil was down 17 cents to $87.91, still up $2 from last Monday’s $87.61 a barrel.
“Demand for gasoline continues to weaken as we get closer to seeing the first snow flurries fly across some areas of the country, and against the backdrop of winter, there isn’t as much desire to get out,” De Haan said. “Coupled with cheaper winter gasoline and refinery issues that have faded into the rear view thanks to the drop in demand, gasoline prices have been weakening even as oil prices have climbed.”
Contact Marvin Clemons at mclemons@reviewjournal.com.
