The price of gas is expected to fall below $2 a gallon by the time the New Year rolls around. Gas hasn't been below the $2 mark since 2009, when the U.S. was in the depths of the recession.
Drivers are already paying about 89 cents less a gallon than they were a year ago, and the price is expected to keep dropping. The national average price for a gallon of gasoline reached $2.59 Monday, the lowest since April 30. According to AAA, the price of gas has fallen for 26 days straight as of August 10. Analysts predict that by Labor Day gas will be 10 to 15 cents lower.
Patrick Dehaan, senior petroleum analyst at Gas Buddy, has looked at the key factors that are pushing prices lower. "We are seeing declines now, but the decrease should pick up steam in mid-September," Dehaan said.
Oil traders are signaling lower prices in the futures markets. Implied spot prices for some major gasoline markets in November and December are already trading at around $1.25 a gallon, according to Tom Kloza, global head of energy analysis at Oil Price Information Service.
The regions that will experience the lowest prices will be the Southeast, the Great Lakes, Oklahoma, Texas, the Gulf Coast and, toward mid-winter, the Rocky Mountains.