NEW YORK (AP) – A slew of global economic and geopolitical factors are working to pummel the price of oil and set up U.S. drivers for very low gasoline prices later this year.
The price of U.S. crude dropped 7.7 percent Monday to close at $52.53 a barrel and is now down nearly 15 percent from the high for the year set on June 10.
Gasoline prices in the U.S. will likely slide somewhat from a national average of $2.77 over the next few weeks. Experts then expect a substantial decline in late summer and fall, pushing average gasoline prices in some low-price states below $2 a gallon again.
“We’re going back to some of those low numbers we saw over the winter,” said Tom Kloza, chief oil analyst at the Oil Price Information Service. “In some places (gas) prices starting with a 1 should come back by football season.”
There are several signs around the world that point to falling demand for crude and fuels at a time when supplies are high and possibly rising: