Gas prices appear to be dropping as some reports suggest $5 per-gallon at the pump. Oil has fallen and the national average is showing below 2011 expectations, but the Energy Department is still preparing for long term fuel hikes. Most of the problems depend on the Europe financial unrest.
November is a good forecast to watch on oil prices. Most analysts say that the $5 per-gallon pump price is behind us. Unless you’re living in a place like the Bahamas, where they pay $5.41 per gallon, don’t expect those numbers to hit the United States.
The national per-gallon average fell 5 cents since Thursday, Sept. 15. In fact, all prices have dropped during the past 48 hours around the country. Even so, there is still the fear that the cost of oil could rise depending on the outcome of the Europe financial crises.
The national average also fell last week, declining 4.2 cents to $3.61. The average price is up 2.4 cents from a month ago and 88 cents above since September 2010. This is why the price trend is pointing towards a downward direction through November.
“As we enter October, we’ll see markets slowly quiet down, with retail gasoline prices falling to $3.35 to $3.55 on average by Thanksgiving, with the exception being typical hot spots on the West Coast,” Patrick DeHaan, a senior petroleum analyst, said in a statement.
There is weak demand for fuel in the U.S., but other developed economies in Europe, world energy consumption will soar in the coming decades, mostly driven by China and India and the emerging nations of Asia and Latin America, according to the Energy Department’s International Energy Outlook 2011, released Monday.
Long term, oil and fuel prices will increase, the Energy Department said.