Summer gas prices expected to be 32% lower this year

  • Associated Press
  • Tuesday, April 7, 2015 1:40pm
  • Business

NEW YORK — Drivers will see the lowest summer gasoline prices in about 6 years, according to the Energy Department.

The national average price is forecast to fall 32 percent from a year ago to $2.45 a gallon between April and September, the period when Americans do most of their driving. That would mark the lowest seasonal average since 2009.

For the year, the department’s Energy Information Administration expects gasoline to average $2.40 a gallon, down from $3.36 in 2014.

Tom Kloza, chief oil analyst at OPIS, said he expects the fluctuation in the price to be uneven, and said it could even dip below the $2 mark within the period. He expects demand for gasoline to reach a high point in July and August.

The lower prices are a result of world oil supplies growing faster than demand because of higher production in North America and elsewhere. That dynamic has been depressing the price of crude oil. But, the Energy Department warned that the forecast could substantially change if oil-related sanctions against Iran are lifted as part of ongoing negotiations. That country is believed to hold at least 30 million barrels of oil in storage.

The price of Brent crude, a benchmark used to price oil used by many U. S. refineries and the most important factor in gasoline prices, is forecast to fall 40 percent this year.

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