Some parts of the United States may see gasoline prices on retail stations drop to around $2 a gallon in the next few. In fact, pumps across the U.S. South and Midwest are hovering just around 20 cents above $2-a-gallon level. In fact, gasoline futures in New York dropped over 13 cents on Nov. 28, 2014, after Organization of Petroleum Exporting Countries failed to cut oil output.
OPEC, which supplies around 40 percent of the world's oil, will maintain its collective crude output target at 30 million barrels a day, according to Saudi Arabia's Oil Minister Ali Al-Naimi. Michael Green, a spokesman for the AAA motoring club, remarked that such drop could mean a decline in pump prices by up to 20 cents a gallon.
Patrick DeHaan, a senior petroleum analyst at GasBuddy Organization Inc., quipped that the cheapest 1 percent of fuel stations may offer gasoline prices within a few pennies of $1.99 over the next two weeks. He added that at least one station in the US will offer $2 per gallon by Christmas. “That's more like a certainty," he said.
Pump fuel prices dropped by almost a dollar a gallon in the US from the peak rate this year, which by estimates of IHS Inc., means at least $500 annually in extra disposable income. The average pump price was $2.792 on Nov. 27 – a drop of 90.4 cents from a peak of $3.696 on April 26, according to data compiled by AAA show.
The drop in fuel prices also spelled good news for carmakers, as consumers have seen a better reason to purchase minivans, pickups, SUVs and crossovers. Should the average gas price in the US drop below $2 this month, this would mark the first time it went such level since March 24, 2009. Gasoline futures also dropped below $2 a gallon this month for the first time since September 29, 2010.