Gas Prices Expected to Drop Again
Experts have been expecting a drop in gas prices in the second half of 2015, and their predictions are starting to come true.
Tom Kloza, chief oil analyst for the Oil Price Information Service, says pump prices are eroding in the state, and there are discount stations that right now may be pumping in the $2.20 range.
"Crude oil production remains very very close to the highest level that it has been since April of 1971. Parts of the country are seeing some sub-two-dollar numbers popping up, and New Jersey may be about $2.20 or so as the best number," Kloza said.
With all that crude oil out there, prices go down, even with the high summer demand, according to Kloza. He says we have had very strong gasoline demand during the summer, but it will fall substantially in pretty much every state after Labor Day.
"What has been an unprecedented glut in crude oil is being transitioned into a glut in gasoline and diesel," Kloza said.
Already, we have crude oil prices within $5 of where they bottomed out back in January. So the writing is on the wall, Kloza said.
Kloza says he's holding with a prediction of Jersey prices under $2 in the year's last 90 days.
"I would not be surprised to see a $1.75 to $2 for gasoline by the time Christmas rolls around this year," he said.
He says if you are a consumer, and you are a consumer in the northeast, you are looking at the possibility of the lowest jet fuel prices, lowest diesel prices and lowest gasoline prices that you have seen since 2009.
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