Tags: EIA | report | gasoline | 2.80

EIA Report: Gasoline Will Average $2.80 a Gallon Next Month

By    |   Thursday, 13 November 2014 02:25 PM

Gasoline prices fell below $3 a gallon for the first time in four years earlier this month, and the Energy Information Administration (EIA) isn't looking for a major comeback anytime soon.

The national price of regular gas stands at $2.92, down from $3.20 a month ago and $3.19 a year ago, according to AAA.

Gas prices are dropping in response to the plunge in crude oil prices, which are falling amid sluggish demand and bountiful supply.

December West Texas Intermediate crude futures settled at $74.39 on the Nymex Thursday.

Stagnant economies overseas are depressing demand for oil there, and U.S. oil production is at its highest level in at least 31 years, thanks largely to the shale revolution.

As for the EIA, it predicts national gas prices will average $2.80 per gallon for December, $3.39 per gallon for 2014 as a whole and $2.94 per gallon for 2015. When it comes to WTI crude, EIA forecasts an average price of $77.75 next year, down from $95 in 2014.

Talk has spread through the oil market that OPEC will take steps to boost crude prices at its meeting later this month.

But "OPEC cannot and will not take the pain necessary to correct the imbalance" between supply and demand, Gary Ross, CEO of Pira Energy Group, told the Financial Times.

Saudi Arabia has shown in recent weeks that it is more eager to slash prices than production, as it seeks to retain market share. It has recently reduced prices to customers around the world.

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Gasoline prices fell below $3 a gallon for the first time in four years earlier this month, and the Energy Information Administration (EIA) isn't looking for a major comeback anytime soon.
EIA, report, gasoline, 2.80
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2014-25-13
Thursday, 13 November 2014 02:25 PM
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