The U.S. Energy Information Administration said on Tuesday that is anticipating gas prices will drop below $2 this coming holiday seasons. In December, the state's gas price monthly average before dropped under $2 and almost fell past the $2 boundary in January 2015.
The monthly average amount of the state fell to $2.26 in July for a month-low down from $2.41. It is expected to continue declining until the end of 2016 due to the oil glut, cessation of summer driving and transition of refineries resorting to inexpensive fuel blends for the winter, US News reported.
"High gasoline production is leading to motor fuel inventories that are the highest on record for this time of year, which is helping to keep prices down at the pump," EIA Administrator Adam Sieminski said in a statement.
Factors including the Middle East stable production of oil, US recent oil drillings and Iranian crude returning in the world market cause oil glut. Additionally, Asia's slow economic growth increases supplies and subdue prices.
Gas prices declined in 38 states including Washington, D.C. over the last week, but was hugely foiled by the rise in numerous Midwestern states. Even with consecutive weeks of gas price progress in 12 states, it stays gloomy in every state in contrast to a year ago where three Western states see discounts higher than 75 cents a gallon.
To date, U.S. gasoline stations comprised of 44 percent retailers who sell gas for $2 or less a gallon. On the other hand, only a percentage of gasoline stations in the US sell $3 of gasoline per gallon.
In other news, the motor club stated $2.12 average retail price per gallon of regular unleaded gasoline nationwide, with little or no difference at all the other week. During summer, gas supplies have continued with the consumers' needs even if last week's federal details state that the loftiest decrease in those supplies is taken advantage by drivers, according to United Press International.
Moving forward, AAA suggests that excluding unexpected security concerns or weather phenomena such as a hurricane, pump prices should push lower. As long as the summer driving season closedown Sept. 15, the national average price will fall under $2 a gallon.
