It is difficult to forecast oil and gasoline prices due to world events, but currently the EIA expects gasoline prices to decline further this year according to the Short Term Energy Outlook released today:
• The market’s perception of reduced risk to Iraqi oil exports and news regarding increasing Libyan oil exports contributed to a drop in the Brent crude oil spot price to an average of $107 per barrel (bbl) in July, $5/bbl lower than the June average. EIA projects Brent crude oil prices to average $107/bbl over the second half of 2014 and $105/bbl in 2015. …
• Regular gasoline retail prices fell to an average of $3.61 per gallon (gal) in July, 8 cents/gal below the June average. Regular gasoline retail prices are projected to continue to decline to an average of $3.30/gal in December. EIA expects regular gasoline retail prices to average $3.50/gal in 2014 and $3.46/gal in 2015, compared with $3.51/gal in 2013.
emphasis added
Steady or declining gasoline prices would be a positive for the economy. Right now gasoline prices are down to around $3.47 per gallon nationally according to the Gasbuddy.com.
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.
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| Orange County Historical Gas Price Charts Provided by GasBuddy.com |