The drivers who have witnessed a steep rise in the gasoline prices in the recent past have the opportunity to relax for now. This summer, the prices of gas will be lowest in the last six years at least.
Tom Kloza, the chief oil analyst at the Oil Price Information Service stated, “It’s a cheap, cheap, cheap year.” According to the Energy Department, the prices of gasoline are expected to average at $2.55 per gallon between the months of April and September. This would prove to the lowest gas price since the year 2009. A typical US household can make a savings of up to $675 on gas as compared to the last year.
A collapse in oil prices began last June at $107 a barrel. It ended at a value of $43 in mid-March. As a result, the gasoline prices came down to $2.03 per gallon. This level of gas prices have not reached until this point since March 2009. Since the recession in 2009, the prices of crude have risen to $60 from $20. The demand of fuel has increased considerably in the last few years in the US and it has contributed to the lower prices of the same.
The average price in Connecticut was $2.82 on Tuesday, which is $1.11 cheaper as compared to the last year prices, according to the report by AAA. The supplies of crude oil are high and it has impacted the prices fair bit.
The CEO of EOG Resources, William Thomas, who is also considered to be one of the country’s biggest shale drillers believes that the drilling activities would pick up once the oil prices stabilize to $65 or more. The refiners are reaping great profits due to the low cost of purchasing crude as compared to the prices received for fuels.
Tom Kloza believes that the national average will stay between $2.45 and $2.60 throughout the summers.