Oil Collapse Signals More Good News At Pump

Chris Sommer
November 13, 2018 - 4:57 pm
Pumping Water Instead of Gas

Dreamstime

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DALLAS (KRLD) - Oil prices got pummeled again on Tuesday.

The price of West Texas Intermediate Crude tumbled another 7% in Tuesday's regular session, with oil closing at $55.69 a barrel.  Oil finished lower for a record 12th-consecutive session.

GasBuddy.com Senior Petroleum Analyst Patrick DeHaan said the staggering recent drop in oil is astounding, "Crude oil prices are just getting annihilated.  The market is past a bear market.  The price of West Texas Intermediate is now down 26% since October 3rd.  That is basically six weeks ago."

As the OPEC nations scramble to find a way to stop the bleeding, DeHaan says drivers will continue to reap the benefits of lower gasoline prices.  With a handful of North Texas stations already at $1.99, DeHaan says another significant drop is coming.  He said, "My one word to motorists would be 'hold off' on filling up.  Every day, you'll likely see gas prices inching lower, and if you wait a week, you'll probably see prices 10-to-20 cents lower.  By Thanksgiving, you could see the city-wide average in Dallas down by 10 or 15 cents a gallon."

DeHaan said Dallas-Fort Worth is already among the few U.S. markets where today's gasoline prices are lower than they were one year ago, "And that gap is going to continue to grow.  Prices today averaging $2.29.  A year ago today, they were $2.34.  Can you even remember to the start of February, when the average price in Dallas was $2.69?  Average prices have plummeted 40 cents a gallon in the last month.  This is nothing short of a collapse."

DeHaan said the staggering drop in oil prices is a major headache for the industry in Texas, as it continues to hold out hope for action by OPEC.