(December 15, 2015) — West Central Kentucky gas prices remained around $1.86 per gallon, according to AAA East Central’s Fuel Gauge report. The national average is $2.013.
This week’s West Central Kentucky average price: $ 1.868
Average price during the week of December 7, 2015: $ 1.871
Average price during the week of December 15, 2014: $ 2.364
The following is a list of the average price of unleaded self-serve gasoline in various areas:
$1.930 Bowling Green
$1.803 Elizabethtown
$1.952 Louisville
$1.809 Owensboro
$1.845 Paducah
On the National Front
With the falling cost of crude oil, consumers are paying the cheapest prices at the pump, on average, since 2009.
Drivers are saving about 21 cents over the past month and 54 cents over last year at this time, with the current average 79 cents lower than this year’s peak price.
Prices for crude oil opened this week at its lowest point in more than five years. Last week, the West Texas Intermediate crude oil price closed at $35.62 per barrel, the lowest for that benchmark since the Great Recession of 2008-2009.
As global supply continues to outpace demand, the market imbalance should continue into the new year, keeping a price ceiling on oil costs. The cost of crude oil has fallen by about 60 percent compared to June of 2014.
Overall, average prices remained relatively steady this week, with 26 state averages falling below the $2 per gallon mark.
The market focus continues to center on the Federal Reserve’s potential to raise interest rates, for the first time in seven years, following a strong U.S. jobs report. An increase in interest rates often leads to a stronger U.S. dollar, which would make oil relatively more expensive for those with foreign currency and potentially exacerbate the global over supply.
Over the past week, the domestic oil rig count fell by 28, the largest weekly increment in almost a quarter. However, strong production continues to dominate the market. Also, members of Congress are working on a budget deal that would end the ban on U.S. crude oil exports, which could further impact domestic production and global supply.