gas prices

Gas Prices Hit 2014 Lows

Drivers will be happy to hear that gas prices have dropped to new 2014 lows and will continue to do so, according to AAA Mid-Atlantic. On Friday, the national average for unleaded gasoline dropped to $3.24 a gallon, the lowest average since Dec. 2014.

This current dip is being attributed to supply outrunning demand (which has seen a drop post-Labor Day) while markets remain virtually unaffected by geopolitical tensions in the Middle East, Europe, and Africa. Cost per barrel of crude oil went from $90.34 on Monday to $85.82 on Friday, the first time prices have gone below the $90 mark in 17 months.

The AAA projects that prices may even fall below the $3 mark before the end of the year if low demand and crude oil prices remain consistent. The absence of natural disasters to interrupt production and refining also helps. The Atlantic is also facing its gentlest hurricane season since 1983, avoiding the disastrous effects felt from storms like Katrina and Sandy.

Inventories of crude oil and gasoline have skyrocketed into the hundred millions according to a weekly report by the Energy Information Administration. With falling prices and favorable weather conditions, demand for gasoline will increase while motorists take advantage of the lowest prices since 2010.

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