Oil plunges in surprise as gasoline prices drop
Suddenly, summer vacation is a little easier on the pocketbook.
American drivers are poised to reap unexpected savings at the gas pump after oil prices kicked into reverse.
Oil plunged Wednesday after a report indicated that supply was outpacing demand, setting the stage for lower-than-expected fuel prices.
The price of West Texas Intermediate crude, considered the U.S. benchmark, fell 5%, or $2.47 a barrel, to $45.72. Oil continued to drop in Thursday trading, falling another 1% in early trading.
“This is a big surprise and it’s a huge win for motorists hitting the road this summer,” said Patrick DeHaan, GasBuddy.com analyst.
The price of gasoline was $2.36 a gallon on Wednesday, according to GasBuddy. That’s equal to the price a year ago and down 2.3 cents from a week ago.
Gas prices are defying predictions from the beginning of the year, when some experts believed they would close in on $3 during the summer travel season.
Written by Nathan Bomey for USA Today