High inventory and low demand in the United States contribute to the decline in the prices of petroleum products.
Raul A. Bernal
rbernal@prensa.com FreeTranslation - rough edit by me.
26/11/2014 - The decline in the price of a barrel of oil in the last few weeks has had more force in Panama after projecting a further drop in the petrol and diesel.
The latest trend shows that a gallon of gasoline of 95 octane could be reduced 33 basis points. If so, it would be the biggest drop in the year.
Same situation would be a that a 19 cent reduction of the price of a gallon of gasoline of 91 octane is planned for the end of last week, according to preliminary reports that appear in the electronic page of the National Secretariat of Energy.
The regulatory agency estimated that a gallon of low sulfur diesel will be lowered by at least 15 basis points.
In the US market -reference in Panama- there is a high inventory of products compared with the demand. The cold wave that is hitting the United States (US) also is preventing people are mobilized to different points of the country, which pushes to diesel prices go into a tailspin.
However, it is expected that in the next few days there will be an increase in the price of bunker oil, because its use is essential to generate heating in homes and businesses in the US.
The overproduction of oil at the global level, the high production of raw material in the US and the lack of decision of the exporting countries to reduce their production, among other factors, have also affected to cheaper fuels.
CURRENT PRICES
$3.62 Cost per gallon of gasoline of 95 octane.
$3.30 A gallon of gasoline of 91 octane.
$3.22 a gallon of diesel in Panama City.
Replies
I recently paid under $2.60 gal for regular in the VA suburbs of Washington, DC. It is easily $1.00 cheaper than 4 months ago. And it is projected to fall even farther.
Oddly, diesel here is usually equal or higher to premium gasoline. Now it is running $3.25.
Typically, we are at the high end of the spectrum because of local taxes added.
My ancient cars get about 15mpg, so the drop in prices is really appreciated.
I hope we will start to see some reductions in prices - how about the taxi drivers - their costs have gone down $1/gal; about time that was reflected in the cost of a ride.
91 was $0.83 this morning at the Terpel and still $0.88 on the Delta sign at Los Etablos
Also the fuel surcharge from the mailing/freight services like Airbox Express that always goes up up up but never goes down.