AAA Carolinas: Gas prices down in S.C., N.C.

FROM STAFF REPORTS

Holiday travel is wrapping up, and across the Carolinas, prices have dropped below $2 in both states, according to a news release from AAA Carolinas.

North Carolina's statewide average of $2.18 is five cents less than a week ago and 25 cents less than this time last month. Gas is 16 cents cheaper at the pump on average in N.C. than this time last year, and South Carolina's statewide average of $1.96 is also five cents less than last week and 25 cents less than a month ago, according to AAA Carolinas.

Retail prices have dropped nationally for 83 of the past 90 days, with the national average for regular unleaded gasoline at $2.30 per gallon, which is six cents less than one week ago, 24 cents less than one month ago and 16 cents less than at the same time last year.

The demand for gas is expected to dwindle during January following the busy holiday travel season. At the same time, Organization of the Petroleum Exporting Countries will begin production cuts on Jan. 1, with hopes that the shift in global supply will push oil prices higher. The effectiveness of the cuts will likely not be known until later in the first quarter, according to the release.

"All eyes are on OPEC to kick off the year," Tiffany Wright, AAA Carolinas spokesperson, said in the release. "Many are waiting to see if they stick to their promise to cut crude production by 1.2 million b/d (barrels per day) and if the proposed cuts will be enough to restore balance to the market. Cutting production would likely raise prices as supply decreases."

During the past few years, OPEC and partnering countries have demonstrated a strong resolve to comply with proposed cuts in production. It is likely that the cartel will reconvene in April, and if there is a need to further balance global supply and demand, OPEC will likely tweak current production numbers at that meeting.

If you are looking for a way to save at the pump, AAA members can register with their AAA card to save five cents per gallon every fillup, every day at Shell gas stations. Visit https://bit.ly/2AlTNrb.