Remember how excited you were when the price of gasoline dropped below $3 a gallon? Now, for a few lucky drivers, its price has fallen below $2.
The lowest gas in the nation could be found at the OnCue gas station on 44th and Shields in Oklahoma City. Regular gas was selling for just under $2 there on Wednesday. According to Tom Kloza, chief oil analyst for the Oil Price Information Service and GasBuddy.com, other parts of the nation will soon see similarly cheap gas prices.
— LJ (@OVOLance) December 3, 2014
Rural Virginia, Missouri, South Carolina, Texas and maybe New Mexico could be joining Oklahoma in having some gas prices drop below the $2 mark, he said. A smattering of gas prices below $2 could be seen in those states by the weekend.
Kloza said Oklahoma, with a combination of low wholesale prices and low state gas taxes, is the epicenter of cheap gasoline right now. Several other stations in Oklahoma City are charging less than $2.10 a gallon already.
While the dirt-cheap gas is available at a smattering of gas stations in that state, it’s not the average price of gas there. That’s $2.52 for a gallon of regular. The average price of gas in the U.S. is $2.74, according to GasBuddy.com.
“Wholesale gas is as cheap as it can get right now compared to crude oil,” said Kloza. “But I could see crude going down to $35 or $40 a barrel by next year if OPEC doesn’t do something to get prices up. If that happens, $2 gas will be common in a lot of places.”
Increased production in North America, slower consumption because of sluggish economies in Europe and Asia, more fuel efficient cars and a stronger dollar are all combining to send crude oil down its lowest point in more than six years.