Wedoany.com Report-Dec 19, Usually, conversations around gas prices center on why they’re rising and how national and global economic factors in the oil and gas industry contribute to the spikes. But not this time.
Gas prices in Midland-Odessa have dropped to their lowest levels in three years, offering a welcome relief to consumers. According to GasBuddy, the average price per gallon in the area has fallen 12.8 cents in the past week, now sitting at $2.51 per gallon. That’s 10 cents lower than last month and 4 cents less than this time last year.
“It’s unusual to do a story on low gasoline prices, but it’s really good news for the consumer,” said Mickey Cargile, President of Cargile Investment Management.
Cargile explained that gas prices in Midland-Odessa are typically higher than the national average, making this drop especially notable.
Why Are Prices Dropping ?
The primary factor behind the decline is reduced oil demand in China, which has created an excess supply in the market.
“Oil demand in China has been down this year, and so we have some excess oil on the market. That’s kept the price around $70 per barrel on crude oil, and crude is the biggest factor in the price of gasoline,” Cargile explained.
But it’s not just China. Overall demand for gasoline has been lower than expected this year. On average, most consumers use about 1,000 gallons of gas annually. With national gas prices averaging $2.99 per gallon—down from a high of $3.70 this year—pricing has remained relatively stable.
Looking Ahead
The drop in prices may continue into the holiday season and into next year, though experts caution that this trend isn’t guaranteed.
“If there’s more drilling under President Trump’s initiative, that will again put more supply on the market and bring the price down a little bit. But we have very stable oil prices right now, and I expect them to stay between $60 and $70 a barrel,” Cargile said.
For those planning ahead, now is an excellent time to budget for gas, particularly as the holidays approach and families begin traveling.
“If you’re budgeting, budget somewhere around $3.00 per gallon of gas. Most consumers use about 1,000 gallons of gasoline a year. So, I think that’s a good budget to use, and hopefully, that’ll be a little bit high, and you’ll have some extra money for next Christmas,” Cargile added.
How Midland-Odessa Compares
While Midland-Odessa enjoys historically low gas prices, other Texas cities are seeing varying trends. Lubbock gas prices rose to $2.43 per gallon, while Amarillo averages $2.39. The statewide average dropped to $2.49 per gallon.
Drivers in Midland-Odessa will hope this trend of lower prices continues into the new year, providing some relief to wallets during the holiday season.
