Canadian Crude Drives Rocky Mountain Gas Prices Down
Montana fuel prices dropped two tenths of a penny over the past week and are very close to breaking a three dollar average.
According to petroleum analyst Patrick Dehaan, this is part of an unusual trend. “Traditionally, six out of the last seven years in fact, gas prices have gone up between Christmas and mid January. So the fact that prices haven’t really moved up a whole lot and actually have gone down in Montana bucks the trend we usually see.”
Interview with Patrick Dehaan:
An increase in gasoline supply is keeping prices low says Dehaan. “Suddenly over the past six weeks we’ve seen gasoline inventories pick up sharply and now stand 4% ahead of a year ago.”
Another major price depressor is the supply of Canadian crude oil is pushing prices down. In fact, the lowest prices in the country right now are near the Rockies precisely because of Canadian crude.
On January 14, the lowest prices in the country were coming out of Montana’s neighbor Wyoming where stations in Laramie were selling gas at $2.35 a gallon.