EIA Forecast: Gasoline Prices expected to average $3.39 per gallon in 2014
The EIA expects gasoline prices to decline further in 2014 according to the Short Term Energy and Winters Fuel Outlook released today:
• The weekly U.S. average regular gasoline retail price has fallen by more than 40 cents per gallon since the beginning of September. EIA's forecast for the regular gasoline retail price averages $3.24 per gallon in the fourth quarter of 2013, $0.10 per gallon less than forecast in last month's STEO. The annual average regular gasoline retail price, which was $3.63 per gallon in 2012, is expected to average $3.50 per gallon in 2013 and $3.39 per gallon in 2014.
• The North Sea Brent crude oil spot price averaged nearly $110 per barrel for the fourth consecutive month in October. EIA expects the Brent crude oil price to decline gradually, averaging $106 per barrel in December and $103 per barrel in 2014. Projected West Texas Intermediate (WTI) crude oil prices average $95 per barrel during 2014.
Gasoline prices are down to around $3.20 per gallon nationally according to the Gasbuddy.com. Gasoline prices averaged $3.52 for the same week in 2012.
Brad Plumer at the Wonkblog writes: The surprising reasons why gas prices are falling sharply. Plumer discusses seasonality, the rising supply of gasoline, fewer refinery disruptions, less demand and more. Whatever the reasons, this is definitely a plus for drivers!
The following graph is from Gasbuddy.com. Note: If you click on "show crude oil prices", the graph displays oil prices for WTI, not Brent.