Gas Prices to Start Sliding Labor Day
The analysts at GasBuddy.com have some good news for motorists, but not so great news for those in the oil industry. Prices at the pump start sliding around Labor Day and will keep falling for sometime thereafter. That unfortunately means, no forseeable increase in the price of oil. Here's their latest analysis...
GAITHERSBURG, MD -- (July 31, 2015) – 2015’s second half represents a strong commitment that motorists will spend even less on gasoline this year than they did in 2014. GasBuddy experts say that before Christmas, as many as 20 states could have average gas prices below $2 per gallon as the national average for December slips to $1.98.
“We’re confident that our projections give consumers more than accuracy; we think they’ll help them identify some savings that should come in handy at Thanksgiving and Christmas,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.
“It’s interesting to remember that last year the national average shed more than $1.27 from August 1 through December 31 when the U.S. average was $2.24,” DeHaan pointed out. “This year, if we see just half of that decline it will bring us to below $2 per gallon.”
Monthly National Average and Projections
Projected Monthly U.S. Average (Per Gallon)
States most likely to see average prices at $1.99 or less before Christmas:
AL, AR, DE, FL, GA, IN, KS, KY, LA, MI, MO, MS, NC, NJ, OH, OK, SC, TN, TX, VA.
Contributing to the positive forecast are regional, national and global supply & demand fundamentals that continue to place more downward pressure on crude oil prices than upward pressure, and that trend is expected to continue well into 2016.
“As motorists wrap up their summer vacation road trips, demand for gasoline slips in autumn and winter. At the same time, refining margins are strong and with the switch to cheaper winter grade gasoline in the coming month, ample supply of discounted gasoline will be available to motorists. It’s the perfect recipe for savings at the pump till the end of the year,” noted Will Speer, another senior petroleum analyst for GasBuddy.