WTI Crude
49.34
Brent Crude
52.25
Natural Gas
2.80

Oil plunges in surprise as gasoline prices drop

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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.

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Written by Nathan Bomey for USA Today

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