Analyst Predicts Gasoline Prices Will Soon Move Lower

Aug 29, 2018

The price of gasoline hasn’t changed much this summer, but an analyst predicts it’ll soon start costing less.

The average nationwide price of a gallon of regular gas is now $2.83.

Tom Kloza, the global head of energy analysis at the Oil Price Information Service in Wall, New Jersey, expects a switch to less-expensive winter blends will help push prices down in September and October.

“I think average prices are probably going to come off to somewhere between $2.60 and $2.75. You’ll be able to see some of the off-price people at that number. But I think the lowest prices you’ll see will be between now and election day.”   

Kloza says lower oil exports from Iran might cause gasoline prices to go up again in November and December.

“I don’t think we go to three dollars this year. I think it’s a possibility next spring. It’ll be less dramatic for gasoline than it will for products like diesel, and jet fuel, and heating oil. That’s where the drama is going to be really in 2019.”

Kloza expects those costs will rise because global inventories of heating oil and diesel are low and in about 16 months all big maritime container ships and cruise ships will have to use diesel instead of heavy bunker fuel.