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20 Percent Drop in Gas Prices Coming Soon?



If you're seeing a pleasant decrease in the price at the pump you're not imagining things.

The U.S. average retail price of gasoline has fallen below $3.60/gal for the first time since April 10, 2014. Prices have been on an 18 consecutive day streak where the current price was less than the price from the previous day, and it's the highest number of consecutive down days since the period between April 4, 2013 and April 19, 2013, when prices fell 11.8cts/ gal from $3.63 to $3.52. The U.S. average, now $3.59/gal., has dropped by 5 cents in the past week.

"West Texas Intermediate crude, the benchmark for the U.S., traded below $100 per barrel today for the first time since April, reflecting a slow but steady decline in recent weeks," said Patrick DeHaan, senior petroleum analyst for GasBuddy. "Over the same period, we've seen wholesale crude prices across the country slip dramatically. West Coast wholesale prices have fallen by more than 35 cents per gallon since the beginning of the month, and across the rest of the country wholesale prices have fallen by 15 to 20 cents per gallon."

"We're confident that in coming weeks we'll see retail prices catch up to the wholesale losses. West Coast consumers will likely see their retail prices slide from 15 to 25 cents per gallon over the next two weeks, and across the rest of the country we can expect prices at the pump to shed from 10 to 20 cents per gallon," DeHaan said.

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