Could We See 99 Cent Gasoline?
We WILL see it, according to GasBuddy.com, but how long will it last? The Midwest is getting set up to have gas prices drop below $1.00. We could see 99-cent/gallon gas soon.
According to GasBuddy.com, the Midwest is getting set up to have gasoline prices drop below $1.00. Currently 9 Midwest states are witnessing the lowest gas prices in 12 years.
Oklahoma ($1.37), Indiana ($1.46), Kansas ($1.46), Ohio ($1.48), Michigan ($1.49), Minnesota ($1.52), Wisconsin ($1.54), Illinois ($1.57) and North Dakota ($1.63) as oil refiners offer bargain basement prices to rid themselves of winter-spec gasoline ahead of a pending shift to cleaner burning fuel. (Source: GastBuddy.com)
We also can expect the national average of a gallon of gas to stay below $2.00 for the remainder of 2016. The U.S. Energy Information Administration released their short-term energy outlook this week with an average of $1.98/gallon for the rest of the year. That means that 2016 will be the first year since 2004 that the average was lower than $2.00 for an entire year.
Why? There has been a 70% collapse in crude oil prices since 2014. Crude oil prices are already down $12 a barrel since 2015.
Whether or not our gas dreams come true, we'll at least be spending less on gasoline this year than in the past. Hopefully, that will help invigorate the economy a bit more and get us back on track. We're not too positive that we'll see the economy jump, just because of gas prices, but you never know. At least you won't have to spend your retirement money to fill up the Escalade.