Drivers Seeing Cheapest Gasoline Prices Today Since 2008

As Memorial Day approaches, drivers are seeing the lowest gasoline price today since 2008. But what is the reason for the cheaper prices?

According to market analysts, operations in refineries are strong and higher gasoline demand is not expected to happen for several weeks yet. Meanwhile, stocks external to the Northeast are sufficient. Those factors, in combination with the recently low figures from China, explain the weaker demand for oil at the moment.

Further, the currently low prices of oil are not expected to go on for the entire summer season. That is because demand is anticipated to rise and issues at refineries can happen anytime. However, for the same reason, the current gasoline prices moving to $4 per gallon is not something considered highly likely at the moment. There is a greater likelihood that some of the regions throughout the United States may reach a high close to $4, but in its entirety, the nation will see lower rates at the pump.

In terms of wholesale traders’ prices, the low end of the market is not likely going to dip lower than $2.70 to $2.75 per gallon, which can happen if the best case scenario develops across all factors. However, a high wholesale rate of about $2.90 per gallon is possible in the coming months, a level that corresponds with a retail price that is still not that high compared to what most drivers have seen at the pump for the past months.