As if the three-day Labor Day weekend weren’t enough to get the nation excited, prices at the pump for gasoline and diesel reached their lowest levels since 2004.
In an article by the Stamford Advocate, Oil Price Information Service’s Tom Kloza put it simply” “The year of cheap fuel continues.”
The national average dipped to $2.44 per gallon, which is almost a full dollar cheaper than prices at the same time last year.
Experts say the low prices are due to a pair of factors: low per-barrel prices and a mild hurricane season that has kept oil refineries operating at levels usually hampered by inclement weather at this time of the year.
Americans will save $1.6 billion compared to last year during the Friday-Monday Labor Day weekend.
On a tank-by-tank basis, the average consumer will save “$15 on a typical fill-up.”
Drivers will save about $15 on a typical fill-up. For the four big driving days of the weekend, Friday through Monday, Americans will spend $1.6 billion less than last year
According to an article by Main St., this weekend’s prices represent a 30% drop from 2014.
Southern Methodist University’s Bernard Weinstein, associate director of the schools’ energy research institute, was quoted as saying that another reason for the low prices are “OPEC’s refusal to cut production” and Iran’s anticipated 1-million-barrels-per day production after sanctions against the country are lifted.
In fact, Weinstein said, these two factors could keep oil prices low for several years into the future.
OPEC’s refusal to cut production and the likelihood of Iran pumping an additional 1 million barrels per day once the sanctions are lifted will put further downward pressure on gasoline and diesel prices for the next several years.
Experts say that the per barrel price of oil should remain steady until the end of the year, which is more good news for consumers.