US gas prices at the pump are expected to reach a 2013 low as supply reaches a two-decade seasonal high, Bloomberg reports.
Retail prices dropped to a 33-month low of $3.179 a gallon on Nov. 11 and are now $3.216, according to AAA. Wholesale gasoline in markets from Chicago to Texas dropped to as low as 43.75 cents below futures last week, which means consumers may spend less at the pump through the New Year.
Andy Lipow, president of Lipow Oil Associates in Houston, predicts gasoline will reach $3.15 by the end of the year and tells Bloomberg: “We’re going to see significant increases in gasoline inventories the next few weeks. Refiners will maintain their high rates of utilization while demand declines toward its seasonal low in January and February.”
Gas prices hit a summer peak of $3.68 per gallon on July 22.
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