Gas Prices to Drop by Summer [VIDEO]
I just heard a report this morning that says gas prices are expected to drop as much as 50 cents by this summer! Actually maybe as soon as June! This can't come soon enough. Gas is nearly $1.00 higher than it was at the beginning of the year, and the closer it gets to $4.00 per gallon, the less I am spending on other things that help keep the economy healthy. More after the jump.
As you probably know, gas prices are based purely on speculation on the demand for gas. Since gas prices are flirting with the $4.00 mark, naturally most American's have made cut-backs in the amount of driving they are doing.
Other factors are going to contribute to lower gas prices besides lower demand. The biggest reason being a 15 percent drop in the price for a barrel of oil. In fact, oil prices had the biggest drop in nearly 2 and a half years. In one week prices went from almost $97 to about $80 per barrel! Also, the US dollar is stronger and since oil is priced in US dollars, it makes oil less appealing to people buying with foreign currencies.
Bottom line, enjoy the cheaper gas prices while you can. There is no telling when prices will spike again. My guess is that as soon as Americans feel better about the lower prices, they will start traveling more and therefore drive up demand for oil and therefor oil prices. It's a vicious circle that we are stuck in the middle of.
Since gas prices are still so high, even with the price drop, I found this informative video produced by UPS to help you with some of their gas saving tips! Pretty interesting tips, especially the last one about avoiding left hand turns. Who knew?