Gas and diesel fuel prices are declining but they may not fall as fast or as much as motorists and the RV industry might like because the Organization of Petroleum Exporting Countries (OPEC) is heading in the direction of cutting production by 3.5% beginning Nov. 1, the Wall Street Journal reports.
The OPEC members still must agree to lower their output but the Journal says there are members of the cartel who are worried about crude oil prices plunging lower in the spring.
Meanwhile, lower demand from American motorists since Labor Day weekend resulted in a lowering of the national average price for regular unleaded gasoline this week, according to the AAA.
The national average price for self-serve unleaded was $1.631 a gallon on Tuesday (Sept. 23), but it slipped to $1.62 a gallon on Wednesday (Sept. 24) according to www.fuelgaugereport.com, the AAA’s website.
A month ago, the national average price for regular unleaded was $1.718 a gallon and the all-time record high, not adjusted for inflation, was $1.737 a gallon set on Aug. 30.
However, a year ago, the national average price for regular unleaded was $1.403 a gallon.
The price of diesel fuel is following a similar pattern. The national average for diesel was $1.53 a gallon on Wednesday and it was $1.533 a gallon on Tuesday. A month ago, the national average price for diesel was $1.58 a gallon, but it was $1.451 a gallon a year ago.
The all-time high price for diesel was $1.829 a gallon set on March 14.
The OPEC announcement apparently had a negative impact on Wednesday on the stock prices of three leading RV builders: Monaco Coach; Thor Industries and Winnebago Industries.
Monaco’s stock declined 63 cents a share to $18.07, Thor’s fell $2.13 a share to $54.80 and Winnebago’s declined $1.40 a share to close at $47.10, all in New York Stock Exchange trading.
However, all three companies’ stocks remain close to their 52-week highs. Monaco’s 52-week high is $20.60, Thor’s is $58.82 and Winnebago’s is $51.48.