Motorists hitting the road for the Thanksgiving holiday weekend have at least one thing to give thanks for: cheap gas.
According to the U.S. Energy Information Agency (EIA), the average national price for a gallon of gasoline is $2.16. That’s the lowest level since 2008, when gas prices averaged $1.85 and when the economy was experiencing its worst slowdown since the Great Depression.
The agency expects prices to sink below $2 in January before leveling out to an average of $2.27 in 2017. By comparison, between 2011 and 2015 drivers paid more than $3 a gallon.
Fuel prices tend to follow the ups and downs in the global oil market, where prices rose today amid speculation that OPEC members will soon agree to curb their production and reduce the worldwide glut in crude.
The cost to fill up varies considerably depending on geography. The state with the lowest gas prices is Oklahoma, where it goes for $1.85 a gallon, according to AAA. Eleven other states also enjoy sub-$2 gas: Missouri ($1.90), Arkansas ($1.90), Kansas ($1.90), Texas ($1.92), Mississippi ($1.95), Alabama ($1.95), Minnesota ($1.95), South Carolina ($1.96), Tennessee ($1.96), Louisiana ($1.97) and Virginia ($1.99).
The highest average gas prices are in Alaska, at $2.61, followed by California ($2.70), Washington ($2.63), Alaska ($2.61), Nevada ($2.47) and Oregon ($2.45). Prices can rise even further depending on local air quality and other regulations. Prices in Los Angeles hover around $2.76 per gallon, well above the $1.88 that motorists in Houston pay, according to the EIA.
Investors pay close attention to gas prices because they correlate with consumer confidence which in turn fuels retail sales and broader economic growth.
Recent data show Americans feel more optimistic about their economic prospects. The University of Michigan Consumer Sentiment Index surged 6.6. points in November to reach 93.8, the largest one-month increase in 35 months.
AAA estimates that 43 million people will take to the nation’s roads and highways during the Thanksgiving holiday period.
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