Pump Prices Continue to Drop

Experts predict that U.S. gasoline prices will likely slide further down as inventories rise.

September 24, 2015

WASHINGTON, D.C. – Lately, it’s been a great time to take a road trip. Gasoline prices across the United States have plummeted to lows not seen in years, with the national retail price dropping under $2 per gallon for unleaded gasoline in several regions—with more areas predicted to join the “under $2” club soon, the Wall Street Journal reports.

The low pump prices are fueled by a brimming inventory coupled with crude oil production not declining quickly enough. While Labor Day ushered in the unofficial cap to the summer driving season, scheduled maintenance of U.S. refineries could slow the downward slide of prices.

But that won’t halt the price dropping entirely because while oil production has decreased in the United States, it hasn’t for the Organization of the Petroleum Exporting Countries. Therefore, investment banks have readjusted their 2016 forecast for West Texas Intermediate to $54.40 per barrel, a significant $9 per barrel decline from the August prediction. Oil now hovers just over $45 per barrel, while 14 months ago, it went for more than $100 per barrel.

A recent NACS consumer survey found that lower gas prices haven’t changed consumer behavior or attitudes about the economy in any significant way. Summary results from the survey are available at www.nacsonline.com/gasprices.

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