Trade Resources Industry Trends U.S. Gasoline Prices Reach Record Low

U.S. Gasoline Prices Reach Record Low

U.S. Gasoline Prices Reach Record Low

For drivers in the United States this year, it's been the gift that keeps on giving with low gasoline prices helping them saving money.

The US national average for gasoline has dropped below 2 US dollars a gallon, the lowest price since 2009.

"I had noticed when I put gas in my car, I remember one year ago, I and to put around 50 dollars. Now, with 36 or 38 dollars, I fill up my car."

Manager of the American Automobile Association, Robert Sinclair, says gasoline prices are likely to move down in the coming months.

"We think it's something that is going to continue, there is plenty of crude oil supply still remaining. Crude oil futures are pointing to even lower prices as we go forward in the next month, so we could see prices drop another 25 or 30 cents in the next month."

Sinclair says the current excess supply of crude oil and a fall in demand are fueling the drop in prices.

"There is a lot of excess supply as far as crude oil is concerned. We've also seen the contraction of the Chinese economy which was running 'nip and tuck' with United States as to who was the number one user of crude oil in the world. With the glut of crude oil that we're seeing, we're seeing a plunge in prices for the commodity, with that comes along gasoline."

He adds that lower gasoline prices will reduce costs by 100 billion dollars compared to 2014 and save 550 dollars for each licensed driver in the country.

Source: http://english.cri.cn/12394/2015/12/23/4081s909617.htm
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