Gas prices, which have been surging in recent weeks, will fall off this summer, according to a report from the AP.They cite several oil and gas analysts who expect a fall of around $0.50 in the price of gas this summer. That would bring it below the $4 a gallon level many places around the U.S. have experienced in recent weeks.
From the AP:
“It’s going to be $3.50 per gallon this summer,” oil analyst Andrew Lipow said. “At the very least, you can expect prices to fall 40 cents or so over the next several months.”
Further, The Mercury News reports gas prices in California may get back to the $4 level by the start of summer, falling $0.25.
The recent fall in the price of crude below $100 a barrel is a huge driver for this potential drop off. The AP story alludes to the fact that the price decline in gas will not happen right away, as higher prices tend to remain sticky.
But it’s also important to note that if crude was to rally, on bad weather disrupting refining operations or more Middle East turmoil, the drop in gas prices could be short-lived.