Gasoline prices have fallen some four cents over the past few weeks as crude oil costs continue to see drops, according to new information from a Lundberg survey. That could mean easier traveling this summer for those ready to hit the road.
According to the survey, the national average for a gallon of gas is at $3.67. Other reports also indicate that by Labor Day the price could be at its annual low, making road trips a lot more manageable for families.
"Crude prices have dropped in reaction to Libya having sizably hiked its oil production, and because Iraq's oil output has not been smashed by violence and turmoil there," said Trilby Lundberg, publisher of the survey.
The San Francisco Bay Area remains at the highest price for a gallon, with the region coming it at an average of $4.12 per gallon, while the lowest price was found in Tulsa, Okla., where it was retailing at $3.35 a gallon.
As earlier reported by Tech Times, gas prices appear to have hit their summer peaks and are, as the survey points, ready to drop, and are expected to hit lows in September.
"These prices are a bit excessive, in my view,'' says Tom Kloza, senior energy analyst for gasbuddy.com. "I think we'll drift a bit lower -- with the occasional small bounce -- from now until Labor Day. After Labor Day, we should see a return of sub-$3 a gallon prices," in areas of the South, Rocky Mountains and Midwest.
But any further unrest in Iraq, where the militant group ISIS is taking control of major oil-producing regions, could destabilize the market and lead to increases in prices. Also, observers are cautious over possible storms in the Gulf of Mexico, where any problems or refinery outages could see spikes in pricing.
"You could have one more breakout to the upside this year -- $110 a barrel is key,'' says energy trader Paul Kokuzian of Chicago-based Lakefront Futures & Options. "But barring some really concrete news, crude oil could go back to the $95 level after Labor Day."
For now, it is likely to spur summer travel and more spending by Americans, who will be saving a few extra dollars at the pump when they fill up.