Cheap gasoline prices are about to get a lot cheaper, as U.S. refiners are creating a fuel glut from the global oversupply of oil.
The average national retail price for unleaded regular fell below $2 a gallon this week, a seven-year low. Also, new government data showing the biggest buildup in supply since 1993 sent prices in the wholesale and futures market sharply lower. That should translate to cheaper prices at the pump in a matter of days.
Retail gasoline prices could drop to "somewhere between $1.75 and $1.95" before they bottom in the next 40 days, said Tom Kloza, Oil Price Information Service's top energy analyst. According to AAA, unleaded gasoline was selling at a national average of $1.99 Wednesday.