Should oil prices remain at or below their current rate, the national average could dip below $2 per gallon by the end of the year.
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The price of oil is the lowest it’s been since 2009, just above $40 per barrel at the close on Friday.
Patrick DeHaan, a senior petroleum analyst with GasBuddy, said the Northeast could see an unexpected rise in gas prices in the coming weeks.
Prices reported on GasBuddy.com Tuesday morning showed stations selling fuel for as low as $1.95 per gallon in Medford.
Filling up a passenger vehicle in the United States is the cheapest it has been in more than a decade, yet its remains too expensive.
Chattanooga gas prices, on average, were 51 cents per gallon less than the U.S. average.
DeHaan did say that, barring something unforeseen, “most of the price shocks are behind us”. And he’s putting the operators of gas stations on notice that his office “will not tolerate any unscrupulous behavior that violates Michigan law when it comes to gouging and price-fixing”.
Prices surged after BP’s refinery in Whiting, Ind., the largest in the Midwest, underwent “unscheduled fix work” that shut down the largest of its three crude distillation units on August . 8. “The market hasn’t really had a chance to react, but it could turn ugly at the pump in the days ahead for motorists in that region”. With the conclusion of the summer driving season, demand will begin to move lower, and combined with the return of cheaper winter gasoline in mid-September, much downward pressure remains at the pump.
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Average U.S. gas prices are at their lowest levels for this time of the year since 2004. This compares with the national average that fell 7.1 cents per gallon, GasBuddy said.
