Gas prices tumble in Ohio despite Mideast conflict, many stations below $3 per gallon

This is no Halloween trick: Gasoline prices are tumbling sharply at many stations around central Ohio and throughout the state, with prices dropping below $3 a gallon in many locations and giving inflation-weary drivers a temporary break on the cost of fuel.

Gasoline prices averaged $3.13 per gallon on Monday in Franklin County and $3.16 statewide, according to AAA.

In Delaware County, the price was $2.99 and in Union, it was $3.

Some area stations were well below $3.

The Sheetz station at 920 Polaris Parkway was at $2.67 a gallon Monday morning, according to Gas Buddy. Two other stations, a Thorntons station at 3898 Alum Creek Dr. and Bell Stores at 5501 Fisher Road, were at $2.69 per gallon.

Gas prices have dropped nearly 40 cents per gallon statewide in the past month and are now 66 cents cheaper than a year ago.

Prices dropping despite Middle East conflict

The drop in gasoline prices comes despite the recent attack by Hamas on Israel.

Oil prices did rise several dollars per barrel last week, but it is far from the roughly $40 per barrel spike that followed last year's Russian invasion of Ukraine that sent prices above $5 per gallon in Ohio, according to AAA.

Of course, Russia is a major global producer of oil while Israel and the Palestinian territories are not.

"Prices were falling because we move beyond the traditional busy travel season and the fall maintenance period," said Kara Hitchens, AAA Ohio spokesman. "Demand for gas is soft right now."

The lower gasoline prices come as oil production hit record highs in the U.S. Production totaled 13.2 million barrels per day this month, according to the federal government.

Tom Kloza, oil analyst and founder of the Oil Price Information Service, credited the drop in price to multiple factors.

"Flat demand, plenty of supply and refiners are making some unwanted gasoline as they process crude to make needed diesel and heating oil," he said. "Mismatch of too much light very sweet crude that yields lots of gasoline."

Prices to remain low for now

"As long as that war doesn’t spread into other regions, oil prices should remain stable and therefore lower prices," according to Hitchens.

Also, AAA says if the economy falls into recession next year as many forecasts call for, oil prices and demand for gasoline should stay muted, and that should keep the cost of gasoline under control.

But Kloza is not so optimistic that lower gasoline prices will be a treat for that long.

"The next 100 days don't really represent a search for stasis in gasoline," he said. "We'll look for the new launching pad for a spring rally."

mawilliams@dispatch.com

@BizMarkWilliams