Average gas price will fall to $3.40 a gallon in 2014: GasBuddy
The average price of gasoline in 2014 will fall below $3.40 per gallon for the first time since 2010, according to a report by GasBuddy.com released Thursday.
Next year's average price will fall by around 10 cents from this year's, but it will peak at $3.83 a gallon in the spring, analysts said in the report.
U.S. crude production has reached its highest level since 1989, lifted by the shale oil boom, making the country more independent from other suppliers, the report said.
Peak prices in 2014 / Source: GasBuddy.com
"With the shale oil boom just hitting its stride, the United States has heavy layers of insulation that should protect it from price spikes that could impact other continents," analysts wrote in the outlook.
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Even with the consistent downward pressure on gasoline prices, consumers will see huge swings and regional volatility next year. California's prices are expected to be above $4 a gallon near the end of the first quarter, and Illinois could face a price spike tied to refinery issues, the report said.
"But the interior of the country (a beneficiary of the most discounted crude oil on the planet) should largely have the greatest insulation against super-spikes," analysts wrote.