As we head toward Thanksgiving week, turkey prices are up, and gas prices are down.
Ohio gas stations are averaging around 1.968 today, according to Gas Buddy, breaking the sub $2 range for the first time since January. Gasoline is down nearly 90 cents/gallon from a year ago.
Thanksgiving is a big travel weekend for the United States with an estimated 46.9 million Americans to travel for Thanksgiving, according to AAA. Gas prices are expected to be the cheapest they have been since 2008 over the holiday week.
The lower gas prices are a reaction to the national oversupply of fuel. Crude inventories have increased for several weeks bringing the price of crude down to near $40/bbl. Fuel analysts are expecting inventories to increase again, and are awaiting confirmation from the International Energy Agency which reports inventories again this Wednesday. Iran announced Tuesday plans to export an additional 500,000 bbls /day once sanctions are lifted.
In addition to the current oversupply, global demand is projected to be down throughout 2016. The IEA expects demand to be a sluggish to 1.2 million bbls /day down from 1.8 million bbls /day this year. Slow economic growth in nations such as China are contributing to the predicted sluggish demand.
Nationally and locally, prices are headed lower. If you’re looking for a place to move your gas savings, you may want to consider your food budget.
According to the Livestock, Dairy, and Poultry Outlook from the USDA, “The [Turkey] wholesale price in fourth-quarter 2015 is forecast at $1.31-$1.37 per pound, about 20 cents higher than the previous year. Turkey production is projected to decline again on a year-over-year basis in fourth quarter 2015 and in first-quarter 2016.”
