Why Gas Prices are So Low, and How Long They'll Stay That Way
*By Carlo Versano*
As Americans hit the road in record numbers this holiday, low gas prices are poised to act as a boon for consumer spending. Drivers are already saving $100 million a day at the pump over just last month, according to GasBuddy.
Patrick DeHaan, GasBuddy's head of petroleum analysis, told Cheddar that the dramatic turnaround in oil prices ー light sweet crude was $76 in early October and it's down to $54 ー is making this "a terrific time of the year to hit the road."
He noted some states have at least one station with prices under $2 per gallon: Louisiana, Texas, Oklahoma, South Carolina, Missouri, Kentucky, New Mexico, Indiana, Mississippi, and Ohio.
So what changed in just a few weeks? Largely a factor of supply-and-demand, with a dash of geopolitics thrown in ー oil prices are plummeting thanks to higher production from OPEC, just as the U.S. economy showed signs of weakness. Those two variables alone would be enough for a drop in prices at the pump prices, but matters were further complicated by the international outrage surrounding the Saudi assassination of journalist Jamal Khashoggi.
It is in the Saudis' best interest to keep the oil flowing, DeHaan said, as a way to deflect mounting pressure from the international community over its involvement in the extrajudicial murder of a respected journalist. Indeed, that strategy is paying off ー President Trump issued a statement Tuesday strongly defending the U.S.-Saudi alliance, and expanded upon it in a [tweet](https://twitter.com/realDonaldTrump/status/1065225779825598465) the next day, thanking the kingdom for the low oil prices.
OPEC's next meeting is planned for Dec. 6, and a production cut is expected. Still, oil prices have not reflected that thinking. DeHaan pointed to economic headwinds, and noted that oil prices are often a bellwether for the health of the U.S. economy.
"This party at the pump does have an end in sight, depending on what OPEC does."
Until then, party on.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
