Houston area gasoline prices are holding steady at $3.17/gallon, according to AAA Texas, 8-cents a gallon less than we were paying a year ago.
Part of the reason for that:
Cheaper Crude Oil, an element of the Texas Petro Index.
Texas Alliance of Energy Producers‘ Petroleum Economist, Karr Ingham, says it’s because of a supply glut right now.
“We’ve got an interesting situation in Texas where Crude Oil seems to be piling up in the Production areas because the capacity doesn’t exist to get it out of the Production areas and into the marketplace,” says Ingham.
There’s also a double-discount on West Texas Intermediate, he says, “because oil at Cushing, Oklahoma is already being discounted on the world market, and Texas crude is being discounted on top of that.”
The Texas Petro Index showed an overall 2% increase for 2012, but Texas crude oil prices were down 1%, and natural gas prices plunged over 31% for the year.
Listen for more nuggets from the Texas Petro Index with Brent Clanton and Karr Ingham on Tuesday’s (1/29) Morning Report on News 92 FM.