The Energy Information Administration (“EIA”) is tasked with the duty of monitoring and studying all of the data regarding the movement of fuel prices. They are also in charge of informing the public of their findings. It wasn’t but just a few years ago that fuel prices were at an average of $4 per gallon in the United States. In October of last year, it went to its’ lowest in recent years to averages around $2.46 per gallon. With that in mind, the EIA has some good news as some believe that fuel prices may go even lower.
Decreased fuel prices that started in 2015 was boosted by the fact that oil was as low as $5 per barrel. Reasonable fuel prices are due to high production of oil in the US. Use of hydraulic fracturing was instrumental in recent record-setting production quantities.
The economy was given a huge boost in April of 2015 when oil production reached a record high barrel production of 9.6 million daily. While demand and prices usually increase in the summer, fuel prices will likely fall again before the year ends, during the months of September to November. Record oil production is what supports EIA’s assumptions that fuel prices may continue to drop, as well as opinions from OPEC, Wall Street, and the World Bank.