California heaves sigh of relief as gas prices tumble
Consumers heave a sigh of relief as gasoline prices nationwide show signs of decreasing, following a slump in the demand for crude oil. On September 9th, the national average fell to $3.65, down from a peak of $4.11 in July. After hitting $145 per barrel in July, the market for crude oil collapsed when oil closed Tuesday at $103.26 on the New York Mercantile Exchange. Many financial analysts expect crude oil prices to slide below $100 in the near future.
Gas prices in California plunged 76 cents per gallon after a high in June, according to an update from the AAA of Northern California auto club. A gallon of gasoline touched $3.85, down 28 cents from the previous month. Prices in San Francisco and San Jose have also dropped by 29 cents, making $4.03 and $3.94, respectively.
Californians, who paid almost 25 cents to 35 cents more than the national average for a gallon of gas, are now relieved as prices are falling faster than in other states. High taxes, refining capacity and the use of fuel blends not found elsewhere, have always kept California’s gas prices above the national average. The Organization of the Petroleum Exporting Countries (OPEC) has announced that it will curb production in an attempt to keep prices from falling further.