Wait to fill-up: Fuel prices likely to decline more across most of the U.S.

Nov. 14 (UPI) -- Large declines in crude oil futures prices, with sharp drops in October that deepened in November, have already led to lower fuel prices -- and gas stations should very soon have even lower prices, an analyst said.

"The national average has already shed 24 cents per gallon in the last month," said Patrick de Haan, head analyst at GasBuddy. On top of that, "most states could see a decline of 5-15 cents per gallon ahead of Thanksgiving, with more to come," he added.

"Motorists need not be in a hurry to fill their tanks. Shop around for the lowest prices as some stations will pass on the savings faster than others," he said Tuesday.

The comment came as WTI front-month crude oil prices plunged Tuesday from levels just above $59 per barrel early in the day to above $55 per barrel. WTI futures had traded as high as around $75 per barrel in the first half of October.

The average fuel price of gasoline across the nation as of Wednesday was $2.68 per gallon, according to the automotive club organization AAA.

"State gas price averages are as much as 12-cents to a nickel cheaper a gallon on the week in more than two-thirds of the country," the AAA said in its latest weekly report on Monday.

Fuel sold in service stations across most of the U.S. is a combination of RBOB, or reformulate gasoline blendstock for oxygenate blending) -- which is naphtha obtained from crude oil, with about 10 percent to 15 percent ethanol.

This gasoline mix contains the proportion different for flex fuel, that only some vehicles can use, as it has up to 85 percent ethanol, which can be corrosive for vehicles not prepared to use it in higher quantities. In some cases, like California, another naphtha product known as CBOB is used to meet stricter standards, which also leads to higher fuel prices there.

RBOB gasoline futures for December delivery were quoted Wednesday in the CME exchange at $1.55 per gallon. On November 6, that contract traded for $1.69 per gallon. The unit of RBOB trading is 42,000 gallons.

Ethanol, which is alcohol derived from corn and mainly used to improve the fuel's environmental impact as it adds oxygen, was quoted Wednesday at $1.23 per gallon for December delivery. This was down from $1.31 per gallon on November 6. The unit of trading is 42,000 gallons.

Service stations normally lower prices with a delay that can vary as they deplete their stock bought at higher prices. When prices go up, prices normally see a much faster adjustment.