Experts Think Gas Prices About To Go Lower Than EVER – You Won’t Believe How Low (IMAGES)

For some time now, the United States has been experiencing a rapid decline in gas prices. It’s almost hard to forget when the last time filling up at the tank was a burdensome thing – that’s because nearly two years has gone by since gas was over $3.00 a gallon (on average across the United States). Over the last year or so, gas prices have dropped even further, due to Saudia Arabia continuing to keep up output, and the Iran deal that is expected to glut the global market even more so. All of this is great news – but it looks like the good news will keep on flowing (pun intended) according to experts in the industry.

The AAA and GasBuddy, two top organizations that follow gasoline prices, say that if refinery capacity stays strong the price of a gallon of gasoline could reach historic lows of $1.00 a gallon in some areas – a level that hasn’t been reached since 1999. That would be quite a remarkable event.

Prices are already low by historical standards and depending on which part of the country you live in, already under $2.00 a gallon. If you look at the map below, you will easily be able to see which parts of the United States already receive the cheapest gas. There are very few areas colored in dark green (lower than $1.38 a  gallon). Most of the middle part of the country is either light green ($1.68-$1.83), or yellow ($1.83-$1.98). If gas is pushed downward to $1.00 a gallon, that’s still a huge percentage drop no matter where you live.

Pic via Gas Buddy

Pic via Gas Buddy

Gas prices are mostly driven by four things: oil prices, proximity to refineries, refinery capacity and state taxes and levies.

We already know that crude oil prices are going to continue to fall. Although, there are a few detractors, there always are. Nevermind that – here’s what the money managers that run the economy are doing: while 6,346 of them bet on higher prices (okay – fair enough) 17,517 of them bet on lower prices. It’s not even close. This is the least bullish investors have been on oil in more than five years, according to the U.S. Commodity Futures Trading Commission.

All in all, gasoline futures fell 1.83 cents or 1.6%, to $1.12 a gallon – the lowest it’s been since February 2009. And – gasoline also fell 14.33 cents a gallon (11% for the week) which also happens to be the largest weekly loss since September 2009.

If the experts are right, $1.00 a gallon gasoline may not be that far off. Thanks, Obama!

Pic via Gas Buddy

Pic via Gas Buddy

Featured image via White House.