Posted on 04/08/2015 6:55:11 AM PDT by thackney
U.S. drivers are projected to pay an average of $2.45/gallon (gal) for regular grade gasoline this summer (April through September), according to EIA's Short-Term Energy and Summer Fuels Outlook released yesterday. This year's projected average summer price is down from a $3.59/gal average during summer 2014.
The lower retail price this summer reflects a significant drop in world crude oil prices from last summer. As the main input cost in the refining process, crude oil is the major driver of retail gasoline prices, and U.S. gasoline prices tend to follow prices of the international benchmark Brent crude. For summer 2015, the Brent crude oil spot price is projected to average $58/barrel (bbl), which translates to $1.38/gal for the crude oil portion of the gasoline price. This oil price is down from a summer 2014 average of $106/bbl ($2.52/gal for the crude oil portion). Brent crude oil prices fell sharply in late 2014 and early 2015 as global supply exceeded demand, contributing to relatively high increases in oil inventories.
In addition to crude oil prices, retail gasoline prices include taxes, retail distribution margins, and wholesale margins (the difference between the wholesale price of gasoline and the Brent crude oil price). Taxes and retail margins are generally stable, while wholesale margins are often more variable.
EIA projects wholesale margins during summer 2015 will be similar to both last year's level and the previous five-summer average. However, EIA forecasts wholesale margins will decline through the summer, offsetting the effect of modestly rising crude oil prices, and contributing to a slight decline in retail prices from $2.50/gal in April and May to an average of $2.43 in September.
Forecasts of crude oil prices and wholesale margins are uncertain, and any difference in actual prices or margins from EIA's forecast would be reflected in the retail gasoline price. Additionally, prices can vary significantly among regions. Projected average summer prices for 2015 range from a low of $2.25/gal in the Gulf Coast region to a high of $2.82/gal on the West Coast.
For 2015 as a whole, EIA projects the national regular gasoline retail price will average $2.40/gal. Based on this price forecast, the average U.S. household is expected to spend about $700 less on gasoline in 2015 compared with 2014, as annual motor fuel expenditures are on track to fall to their lowest level in 11 years.
Note to MSM: Obama had nothing to do with it.
The price of oil is heavily influenced by major players. It’s likely they’ve allowed the price to fall in order to kill our domestic oil production, and it’s starting to work...
They did this last 2 presidential elections to help democrats(Raised it during last year of Bush 2008,lowered in in 2012).
Gasoline prices and oil prices will skyrocket after the presidential election next year. Mark my words. then that will trigger the economic collapse.
When has anything gone down in price? What is the reason now. look at the election. what happened to great ebola threat last election? it disappeared right after as it was meant to distract
Not in tax hungry California. We can expect around $4,00 a gallon for that wonderful gas additive they add.
That additive is mostly taxes.
Yeah, that is why the price drop in the fall helped democrats so much in the past elections.
I’m curious who and how you think the global commodity price of oil is manipulated.
Although obama is destroying the USA so fast even getting his FCC gestapo to regulate the Internet I'm looking for another country to escape to.
http://www.cnn.com/2015/04/07/opinions/fiorina-net-neutrality/
Muslims in the Middle East control the price of oil
Doesn’t matter. There will be no variance from the narrative -
all things good are the result of Obama,
all things bad are because of republicans or Bush.
If one country Saudi Arabia cut it’s oil production by 50% tomorrow which they can then oil would skyrocket and you know it. it’s not a free market. and that’s just ONE Muslim country. so you keep believing they don’t control the price
I’m not claiming they are incapable of changing the price of oil, but OPEC has proven lately to be ineffective as a cartel to manipulate price, mostly because of Saudi Arabia unwilling to cut their production to finance other nations’ overspending.
Except in Kalifornia where they have raised taxes once again.
Elections have consequences.
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