Gas Price Savings Look to Continue Into July
NEW YORK (MainStreet) -- Consumers can relax -- at least a little bit -- as U.S. gas prices continue to trend downward. Aside from the U.S. Midwest, which saw gas prices rise by two cents last week, prices across the country are once again in retreat, and that's a trend the experts say should sustain itself going into July.
Can consumers expect gasoline prices to keep right on falling through the Fourth of July weekend, and possibly through the rest of the summer?
There are no guarantees in life, save for death, taxes and Adam Sandler churning out another mediocre summer movie. But Americans can realistically count on lower gasoline prices over the next few weeks, and here are a few reasons why:
Uncle Sam says so: The U.S. Energy Information Administration says the average price of a gallon of gas should remain at or near $3.60 per gallon for the rest of the summer. Only last month the EIA pegged the national average price at $3.79 per gallon. Overall, the government expects gas prices to average $3.56 through this year and $3.51 next year.
The trend is the gas consumer's friend: Gasoline prices have fallen in price for 10 weeks in a row, and diesel fuel prices have fallen for nine weeks in a row. On Wall Street, commodities traders often say one week may be an anomaly but two weeks is a trend. In that regard, 10 weeks seems like a real change of course for U.S. gas prices.
U.S. currency is a factor: Oil is priced in dollars, and the U.S. dollar has strengthened in light of the economic troubles in the Eurozone, even as Greece voted to remain in the lineup of euro nations this weekend. Consequently, a firmer dollar has fueled lower gasoline prices.