Gas prices her in the U.S. have been an incredibly hot topic lately. With national averages reaching just shy of the highest recorded national high in history (4.114), it’s no wonders that consumers and investors alike are dropping beads of sweat left and right — and this has been the case with auto transport companies as well.
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However, in the last month, there has been a change in the winds that has brought some much-needed relief to auto transport companies and others being affected by skyrocketing gas prices. This saving grace has come in the form of a 15% drop in crude oil prices over the last month. Now although this drop in crude oil prices has not hit the consumer market full-on yet, the effects are predicted to be felt in due time. According to the U.S. Energy Information Administration, Americans will begin seeing a slow but steady decrease in gas prices in the coming months. According to automotive group AAA, today’s nationwide average gas price sits at 3.843, which is just over a ten cent drop from last week’s price of 3.955. One factor expected to influence the continued decrease in prices is that there has been a predicted decrease in demand for Fuel. High energy costs are a big deterrent for many Americans who simply cannot afford these high gas prices. This knowledge has scared the oil market into dropping prices in order to retain consumer rates as opposed to the current destruction of demand which the market is seeing. Another key factor that is playing into price decreases is that the EIA only expects a 0.2% demand increase during the peak time period of summer, which would be a huge hit to the stability of annual projections.
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