Gas Prices Are Expected To Drop Later in This Year
July 22nd, 2015
As we hit the middle of the summer, factors are converging that may help cause gas prices to fall below the $2 per gallon mark later in the summer or early fall. Many factors including global, economic and geopolitical have been working together to slowly bring down the price of oil and set up US drivers for very low gas prices later this year.
The price of US crude dropped 7.7% days ago to close at $52.53 a barrel and is now down nearly 15% from the high for the year set in June. Gasoline prices in the US will likely slide somewhat from a national average of $2.77 over the next few weeks. Experts around the globe expect a substantial decline in the late summer and fall, pushing average gasoline prices in some low-price states below $2 a gallon again. (The average price for a gallon of regular was $2.7589 in Atlanta and $2.6634 in Georgia, according to atlantagasprices.com)
There are several signs around the world that point to falling demand for crude and fuels at a time when supplies are high and possibly rising:
The Greek financial crisis could slow economic activity in Europe, which would reduce demand for gasoline and diesel. China's oil imports have already slipped this year and a plummeting Chinese stock market could mean even weaker demand in the world's second largest oil consumer. Oil production in OPEC is helping to keep the world's supplies high. Iran is eager to begin exporting oil that has been held back by sanctions, and talks between the US and Iran that could lift those sanctions, appear to be progressing.
US oil production remained strong even after drillers slowed their activity in the face of low oil prices, and now some drillers are ramping up production again. Whatever it takes, we could sure use the reprieve!