NEW YORK (AP) – The price of oil is on yet another ride down as swelling global supplies overwhelm rising but still relatively weak demand.
The price of oil has fallen close to its lowest price in six years, and many expect it to fall much further in the coming weeks because supplies are still heading up and the summer driving season is still months away.
The lower crude prices will mean gasoline prices will slide lower in the coming weeks, and many drivers will likely pay under $2 a gallon in the summertime for the first time since 2004.
Oil prices had appeared to stabilize in a range nearly 15 percent higher than the depths they had reached in late January. But on Friday the International Energy Agency called a recent rise in oil prices a “head fake” and a “facade of stability.”
“The rebalancing (of supply and demand) triggered by the price collapse has yet to run its course,” the agency wrote in its monthly oil market report.