Gasoline prices continue to fall, but a price cap on Russian oil imposed by Western democracies last week could end the decline, a national analyst said.
The price at Tulsa-are QuikTrips was $2.67 per gallon for regular, unleaded on Monday. Oklahoma also continues to have the second-lowest average prices in the U.S., according to GasBuddy, a fuel-price tracking service. The state claimed that spot last week.
Tulsa prices have dropped more than 40 cents per gallon in the last three weeks and more than 70 cents in the last month.
The last time local prices have been near their current levels was June 2021, according to GasBuddy.
Graph shows gasoline prices in Tulsa over the last 24 months. The last time prices have been near their current levels was in June 2021.
“For the first time in 670 days, the national average price of gasoline has fallen below its year-ago level, dropping for the fourth straight week to its lowest level since January,” said Patrick De Haan, head of petroleum analysis at GasBuddy, in a blog post Monday.
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“Every state has again seen average gasoline prices drop in the last week, and it remains very possible the national average could fall under $3 per gallon by Christmas,” he said.
“There has also been a drop in diesel prices, which this week will fall back under $5 per gallon, and could soon thereafter fall to their lowest level since March.
“However, despite all the good news about fuel prices, there may be some concerns coming as the price cap on Russian oil kicks in. Retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. For now, however, we’ll likely see another week of declines at the pump in nearly all areas,” De Haan said.
On Monday, average prices in Oklahoma and Tulsa were $2.868 and $2.721, respectively, according to AAA, which typically has prices slightly different and a day or two behind GasBuddy’s.
The states with the lowest average prices Monday were Texas ($2.72), Oklahoma ($2.79), and Arkansas ($2.88), according to GasBuddy.
The states with the highest average prices were Hawaii ($5.08), California ($4.67), and Nevada ($4.44).
With OPEC+ agreeing to maintain November’s oil output cuts, the European Union’s $60 per barrel price cap on Russian oil, and the EU/G7 sanctions on Russian exports in place, oil was in rally mode to start the week, De Haan said.
Western governments last week agreed to cap the price of Russia’s oil exports in an attempt to limit the fossil fuel earnings that support Moscow’s budget, its military and the invasion of Ukraine. The aim: hurt Moscow’s finances while avoiding a sharp oil price spike if Russia’s oil is suddenly taken off the global market.
“In addition, it is largely expected that with China may consider and soon re-open parts of major cities and ease its Covid-zero policies, boosting oil consumption,” De Haan said.
The national average price of diesel has fallen 13.6 cents in the last week and stands at $5.06 per gallon, according to GasBuddy.
The average diesel prices in Oklahoma and Tulsa were $4.328 and $4.222, respectively, according to AAA.
Most freight and many delivery vehicles, along with trains and farm equipment, use diesel to deliver and produce a plethora of goods ranging from food to appliances to construction materials.
On Friday, benchmark U.S. crude oil for January delivery fell $1.24 to $79.98 a barrel and wholesale gasoline for January delivery fell 6 cents to $2.28 a gallon.
On Monday, benchmark U.S. crude fell $3.05 to $76.93 a barrel; wholesale gasoline fell 8 cents to $2.20 a gallon.
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