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Gas Prices Remain Stable [AUDIO]

This summer, drivers are seeing something rare at the pump – stability. Gas prices have remained steady throughout most of the summer and look to remain that way into 2014. Tom Kloza, chief oil analyst at Gasbuddy.com, said while summer is often when prices peak, fuel costs peaked in February.  He said we are now below where prices were two years ago.

“So you have to go to 2010 to find an August with prices lower than they are now,” said Kloza.

He explained the reason for the lower prices is because the United States is making plenty of gasoline in its Gulf Coast refineries, and even occasionally importing cargo from Europe or Canada.

Prices could even be heading downwards into the fall and winter, especially in the last weeks of the year.

“I happen to think that at some point in the remainder of the year we’ll see some more downward pressure and it’ll come with a reevaluation in crude. Crude oil prices in my estimation are too high,” said Kloza.

Lowest Gas Prices in New Jersey
New Jersey Gas Prices provided by GasBuddy.com

Already there are stations selling gas for $3.25 a gallon, and Kloza said it is possible for that to drop down to a flat $3.00.

However the production of the Gulf Coast could also be the biggest Achilles heel when it comes to gas cost.

“Because we’re so dependent on the United States Gulf Coast for such high output, hurricanes in the Gulf of Mexico could have a much greater impact then they did just a few years ago,” said Kloza.

Kloza is not too worried by reports of further instability in the Middle East, noting many of those conflicts are already accounted for when experts predict the price.

“You could argue that we could be seeing crude oil prices at under a hundred dollars a barrel if there weren’t worries about Egypt, and Libya, and those places where there are always worries about.”  If we actually get some stability in the Middle East, that’s not to say a peace process but let’s just say the demonstrations go away and people aren’t worrying about the Suez Canal and the Persian Gulf, we could be seeing the lowest prices since 2010,” said Kloza.

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