Gasoline prices are trickling down this week, as crude oil prices hold steady in wake of Iran sanctions
LAS VEGAS, Nev. Nov. 6 2018 – Gas prices across the country are finally dropping after months of unseasonal increases, which were driven by stock market speculation over how U.S. sanctions against Iran would impact the global oil supply.
Oil prices have held steady since the sanctions took effect on Monday, surprising some analysts who predicted Iran’s reduced exports would cause oil prices — and subsequently gas prices — to rise even further to end the year.
That hasn’t happened, in part because oil prices on the stock market had been increasing all year as traders anticipated the Iran sanctions, mitigating any potential sticker shock.
"Crude oil prices have been rising all year in anticipation of sanctions against Iran, which means motorists likely already experienced the worst effects of these sanctions on the price of gasoline," said Michael Blasky, spokesman for AAA Nevada. "If these oil prices continue to hold, we could see another 10-cent price drop in retail prices before Christmas."
Nevada gasoline prices have dropped nearly 3 cents in the last week, settling at $3.27 on Tuesday, with more decreases expected in the next few days. Nationally, the average price for gasoline has dropped from $2.91 to $2.75 in just a few weeks.
Nevadans have paid more than $3 for unleaded regular gasoline since April, with price fluctuations between $3.10 and $3.30 for most of the summer and fall. Gas prices typically fall in the winter, but crude oil prices rose this year due to the Iran sanctions.
Analysts predict the full impact of Iran sanctions may not be felt until next summer, when the travel season increases market demand for fuel. The Iran sanctions, as currently enforced, will remove about 2 percent of the global oil supply from the market, and it remains to be seen whether other oil producers can make up the difference.
AAA November Gas Price Report
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AAA’s Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.
AAA Nevada offers a wide array of automotive, travel, insurance, DMV, financial services and consumer discounts to its members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded more than 117 years ago.