Gas prices in California are dropping ahead of Thanksgiving — prices began cratering in October shortly after Saudi Arabia and Russia agreed to increase oil production to ward off market shocks.
California’s statewide average gas price on Thursday was $3.62, a decline of 19 cents from this time in October. The Golden State still has some of the highest prices in the U.S., with the national average standing at $2.59 per gallon, according to the American Automobile Association (AAA).
Some of the price reductions are due in part to President Donald Trump’s repeated threats against Saudi Arabia and other oil-producing nations if they refused to increase production. He even suggested the U.S. would no longer provide the oil-rich country protection if prices crept up.
Saudi Arabian energy minister Khalid Al-Falih revealed in early October that his country is producing 10.7 million barrels of oil a day, a rate near the record output set in November 2016. Opening the spigots caused prices to tumble.
U.S. crude fell as low as $55 following the move, while Brent crude fell to $65 per barrel. They’d previously been as high as $77 and $87 per barrel, respectively. The uptick also comes as U.S. oil production skyrockets.
Trump is making sure people don’t forget about the low prices.
“Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!” he wrote in a tweet Wednesday morning ahead of the holiday weekend.
Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!
— Donald J. Trump (@realDonaldTrump) November 21, 2018
Production is expected to top 12 million barrels per day by the end of 2019. This, after U.S. oil production hit a record 10.25 million barrels per day in early February, beat out the old record from November 2017. Oil exports averaged more than 2.3 million barrels per day in April, a record, according to EIA.
