With crude oil plummeting to its lowest levels in nearly a decade, gas prices are currently hovering under $2 per gallon across the United States, translating to the average U.S. household saving about $700 on gas this year so far, according to NPR News.
But there's better news coming. If the trends in gas prices continue in their current pace and direction, drivers across America can expect even bigger savings in the following year.
Tom Kloza, head of energy analysis with the Oil Price Information Service, believes that the reduction of gas prices is set to continue well into 2016.
"I wouldn't be surprised to see a year where we might see gasoline prices nationally average between, let's say, $1.85 and $2.75, which will be very similar to this year," he said.
In fact, energy producers across the country are also predicting to slim down their budgets for 2016 in order to adapt to the lowering price of crude oil. ConocoPhillips Co. and Marathon Oil Corp., as well as six more companies, are set to spend about $21 billion less next year.
ConocoPhillips has stated that it plans to cut its spending by 55 percent to $7.7 billion while Marathon is set to cut its budget by 60 percent to $2.2 billion, reports The Wall Street Journal.
However, not all companies in America are expecting gas prices to fully continue moving downward.
For one, AAA believes that Northwesterners, at least, should not be complacent about lowering gas prices. AAA further stated that it predicts a 50-cent spike in oil prices before the end of winter, as refineries initiate maintenance work in preparation for Summer, according to The Columbian.
The U.S. Energy Administration further stated that it perceives gasoline retail prices to average about $2.06 per gallon this December and about $2.36 per gallon when 2016 begins.
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