Gas Prices Dip 3 Cents for Thanksgiving as Middle East Tensions Ease, Says AAA
21 November 1997
Gas Prices Dip 3 Cents for Thanksgiving as Middle East Tensions Ease, Says AAA
SAN FRANCISCO, Nov. 21 -- Thanksgiving travelers will find
relief as gas prices declined in Northern California for the first time in
four months, a California State Automobile Association survey reported today.
Diplomatic progress in Iraq and talk among OPEC member countries to raise
production ceilings have had a "calming affect" on this week's world oil
market, which should bring even more price relief, said one oil industry
expert.
"Prices fell 3 cents a gallon from mid-October, but are still 19 cents
higher than the U.S. average, which also dropped 3 cents," said CSAA spokesman
Vernon C. Thompson. "Gasoline averaged $1.43 a gallon for regular unleaded
self-serve in Northern California."
This is the highest price for November since 1990, when the Northern
California average was $1.45 a gallon during the Gulf War, according to CSAA's
monthly gas survey.
Dropping oil futures coupled with lower demands in winter means gasoline
prices in America will likely continue to decline in the coming months, said
Alan Kovski of "The Oil Daily," a Washington, D.C.-based industry newsletter.
"All signs point to lower prices," said oil expert Kovski.
California's prices -- the second highest in the nation after Hawaii
-- can be partly attributed to a year-round requirement for reformulated
gasoline. This cleaner burning fuel adds about a nickel to gasoline costs.
California's high prices can also be attributed to a less competitive
market for oil companies, said Bill Berman, author of "The Pump Price Report,"
which tracks gasoline and diesel fuel price trends.
"The West Coast has fewer gas stations and oil refineries than before,"
said Berman of Fairfax, Va. "Most independents have gone out of business, and
it's now mostly major brands who don't have the desire to compete on prices,
but mostly compete for market share."
In California, supply and demand for gasoline has remained largely
unchanged in recent months, said Berman. In this time, world oil prices have
not dramatically fluctuated from Middle East violence and heightened tensions
because of a global oil glut, he said.
In California, November city averages for regular unleaded self-serve
gasoline are: Chico, $1.38 (down 8 cents); Concord, $1.37 (down 4 cents);
Eureka, $1.53 (down 2 cents); Fresno, $1.34 (down 3 cents); Lake Tahoe, $1.40
(down 4 cents); Monterey, $1.45 (down 5 cents); Oakland, $1.41 (down 2 cents);
Redding, $1.44 (down 5 cents); Sacramento, $1.41 (down 2 cents); San
Francisco, $1.51 (down 1 cent); San Jose, $1.46 (down 1 cent); San Mateo,
$1.48 (down 2 cents); San Rafael, $1.49 (down 2 cents); Santa Cruz, $1.45
(down 1 cent); Santa Rosa, $1.40 (down 3 cents); and Stockton, $1.39 (down 7
cents).
Since mid-October, gas prices in Nevada are down 6 cents a gallon to
$1.41, while prices in Utah fell 2 cents a gallon to $1.30, according to
CSAA's survey of more than 350 gasoline stations in Northern California,
Nevada and Utah.
In Nevada, Las Vegas' average is down a nickel to $1.37, and Reno's prices
are down 8 cents to $1.46. In Utah, Salt Lake City's average was down
3 cents a gallon to $1.30 while Provo's prices edged up a penny to $1.30.
CSAA is the AAA affiliate for Northern California, Nevada and Utah and
serves nearly four million members with an array of automotive, travel and
insurance services.
SOURCE AAA
