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Oil’s rally has gas prices beginning to follow

With oil’s rally to a new COVID-19 high-water mark, gas prices have begun to follow, even as gasoline demand crumbles to some of the lowest levels in months.

Patrick De Haan, head of petroleum analysis for GasBuddy, said optimism continues to propel oil markets higher, led by positive news on a COVID-19 vaccine.

“Should anything change timing wise, we could see a reversal, but for now it remains full steam ahead with markets focused on the promise of oil and gasoline demand rising, or the best potential outcome of the situation,” De Haan said.

Texas gas prices have risen 3.4 cents per gallon in the past week, averaging $1.84/g today, according to GasBuddy’s daily survey of 13,114 stations.

Gas prices in Texas are 7.7 cents per gallon higher than a month ago and stand 36.0 cents per gallon lower than a year ago.
“Should the hype be overblown, a correction could happen in the weeks or months ahead,” De Haan said. “For now, motorists may see more volatility in oil markets then we’ve seen in months.”

According to GasBuddy price reports, the cheapest station in Texas is priced at $1.45/g today while the most expensive is $2.69/g, a difference of $1.24/g.

The lowest price in the state today is $1.45/g while the highest is $2.69/g, a difference of $1.24/g.

The national average price of gasoline has risen 3.5 cents per gallon in the last week, averaging $2.16/g today.

The national average is up 5.7 cents per gallon from a month ago and stands 42.6 cents per gallon lower than a year ago.

Historical gasoline prices in Texas and the national average going back ten years:

December 7, 2019: $2.20/g (U.S. Average: $2.58/g)
December 7, 2018: $2.10/g (U.S. Average: $2.42/g)
December 7, 2017: $2.23/g (U.S. Average: $2.47/g)
December 7, 2016: $1.98/g (U.S. Average: $2.19/g)
December 7, 2015: $1.83/g (U.S. Average: $2.03/g)
December 7, 2014: $2.43/g (U.S. Average: $2.66/g)
December 7, 2013: $3.09/g (U.S. Average: $3.26/g)
December 7, 2012: $3.12/g (U.S. Average: $3.36/g)
December 7, 2011: $3.11/g (U.S. Average: $3.28/g)
December 7, 2010: $2.79/g (U.S. Average: $2.94/g)

Neighboring areas and their current gas prices:

  • Midland Odessa – $1.93/g, unchanged  from last week’s $1.93/g.
    • San Antonio – $1.75/g, up 7.1 cents per gallon from last week’s $1.68/g.
    • Austin – $1.80/g, up 6.8 cents per gallon from last week’s $1.73/g.