According to analysts working with GasBuddy.com, gas prices in California could sink to less than $2.50 per gallon by the end of the year.
The analysts also stated that gas prices in other states could plunge to under $2.00 per gallon, according to CBS San Francisco.
Patrick DeHaan, senior petroleum analyst for GasBuddy, asserted, “Last year the national average shed more than $1.27 from August 1 through December 31 when the U.S. average was $2.24. This year, if we see just half of that decline it will bring us to below $2 per gallon.”
Speer averred that the reasons for the drop in reason included less driving, as summer vacations came to a close, more supply, and the normal winter switch to a cheaper blend at refineries.
One obvious reason Speer neglected to mention is the continuing impact of fracking on the world’s oil production. As the American Thinker pointed out last December: “Since the fracking revolution began, U.S. production increased from 5 million barrels per day at the end of 2008 to 8.5 million bpd as recently as June 2014.”
That, in turn, may have triggered Saudi Arabia to terminate cuts in production, as Bloomberg reported: “The 12-nation Organization of Petroleum Exporting Countries kept its output target unchanged even after the steepest slump in oil prices since the global recession.”
The American Thinker pointed out, “Without the additional supplies coming on the market, today’s prices would almost certainly be above $100 per barrel, and quite possibly closer to $120.”
The current price for crude oil per barrel is $45.87.