Automobile owners in the Midwest are likely to see a major change in gasoline prices that may effect driving habits as well as the next car they purchase.
The average cost of gasoline in Illinois has dropped 34 percent in the past year to approximately $1.57 a gallon. Drivers in Oklahoma are spending about $1.36 per gallon, according to a GasBuddy Organization cited by Newsmax. According to government data, if stockpiles continue to swell and this trend continues, it is very likely that gas could be as low at 99 cents in cities like Chicago in the near future. Gasoline inventories reached a 21-year high in January. Inventories might have increased by as much as 1 million barrels across the nation, just last week. This all means cheaper prices at the pump. According to its experts, Valero Energy Corp.’s Memphis refinery recently cut back on how much oil it processes as the profit margin from turning crude into gasoline declines.
“The likelihood that fuel cost will dip below $1 is high during the next few weeks, but probably only before the summer driving season”, Michael Green, a spokesman in Washington for AAA, said in a phone interview with Bloomberg. “We may have some stations offering gas below $1 per gallon for marketing purposes, but the chances of a station offering under $1 are going to decrease pretty soon,” he said. Senior market analyst at Price Futures Group in Chicago, Phil Flynn, said, “We’re getting to the point where supplies will peak in the next couple of weeks.” “As inventories increase, more refiners may reduce runs like Valero have and cut back production until supplies get back in line instead of losing money”, he added.
This drop in prices should help all of us out. We must enjoy it while it lasts.