Americans To Save $550 On Gas In 2015: EIA
International Business Times
Published Dec 16, 2014 10:57AM ET
Americans To Save $550 On Gas In 2015: EIA
By Maria Gallucci -
American households could pocket an extra $550 on average next year as gasoline prices continue to shrink. In an era of cheap crude oil and fuel-efficient cars, annual spending on motor fuel in 2015 is on track to fall to its lowest level in 11 years, the U.S. Energy Information Administration said Tuesday.
Household gasoline costs are forecast to average about $1,962 next year -- the first time gas spending has dipped below $2,000 since 2009, according to the federal statistics agency. The forecast assumes that Brent crude oil, an international benchmark, will average $68 per barrel in 2015, while spot prices for U.S. light crude will average $63 a barrel.
Crude prices this year are down 40 percent since June as global supply outpaces demand. U.S. gasoline prices have fallen in step, dropping for 11 weeks in a row to $2.55 per gallon on Monday, the lowest price since October 2009, and the price at the pump will drop even further next year. Crude oil prices account for about two-thirds of the price American drivers pay for each gallon of gasoline, according to the agency.
Analysts say the gas savings will deliver a jolt to discount retail chains, restaurants and auto dealerships as Americans spend those extra dollars. “Lower gas prices are a boon for the economy,” Michael Green, an AAA spokesman, said in an October interview, around the time when gas prices first slipped below $3 a gallon.
Lower gas costs could also make for additional holiday cheer, Mary Epner, CEO of Mary Epner Retail Analysis in New York City, said. “I think it just feels a little more festive. [Families] may be able to guy an extra gift, or a few more holiday decorations,” she said in an earlier interview.
Get The News You Want
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.