Labor Day Weekend is here — a time when Americans flock to beaches, lakes, the mountains and picnics to grab that last bit of vacation before school, Fall and Winter set in. Historically, drivers complain about the price of gas during major holiday periods. There is NO room for complaint this time.
Labor Day weekend gas prices are the cheapest they have been since 2004 — that’s since George Bush’s first term in office. Gas prices have been steadily decreasing since June of this year. According to the American Automobile Association (AAA), the average price of regular gasoline is $2.40 a gallon — more than $1 less than it was a year ago.
There are only 4 states where gas is still over $3 a gallon (California, Nevada, Alaska and Hawaii), and gas prices have always been higher in these places. Checking the more than 130,000 gas stations in the United States, more than 5% are selling gas for LESS than $2.00 a gallon.
Cheaper gas is something to be celebrated, with the average driver saving over $50 a month. But why is gas so much cheaper?
Crude oil prices have dropped considerably. Currently trading at $46 a barrel, crude oil was priced at over $100 a barrel last summer. The glut in crude oil is due in part to increase production by American shale oil producers. In addition, OPEC oil producers have not cut production as they have in the past when prices dropped.
So where are gas prices going from here? Further downward, says the Energy Information Administration. Gas prices are expected to fall to around $2.11 a gallon by the end of the year. AAA predicts prices will fall below $2.00 a gallon by Christmas.
Of course, there is a downside. U.S. oil jobs have been cut due to the falling oil prices. Let’s hope the increase in jobs in other sectors can offset these job losses down the road.
Featured image via thunder1320.com.