Gas prices could drop to $1.50 by Christmas
This might put a bit more "jingle" in your pocket for the holidays: analysts are predicting that gas prices in New Jersey may drop to as low as $1.50 by Christmas.
Tom Kloza, global head of Energy Analysis of the Oil Price Information Service in Lakewood says the savings will likely begin next month.
"The good news for consumers is that you might as well call November, Lowvember. The average for the country just slipped under $2.20. Those are really the lowest numbers since probably February," Kloza said. "And I do suspect that in most cases, they are going to get lower, and if you shop around for your gasoline, you can probably beat those numbers by 25 cents very easily."
He says December and January will be more of the same: low demand, much more supply and cheap prices.
"Because November, December and January typically bring the most bipolar lows for gasoline, and I do think we are on a course, where you will see the occasional price at $1.50 in Jersey," he said.
Those lower gas prices are only part of the story, according to Kloza.
"Whatever hydrocarbon you use for the rest of the year, you are going to be very advantaged to what you were paying for most of the decade. It is cheap natural gas, cheap gasoline, cheap diesel and very, very cheap heating oil. That does not look to change until we get on to the backside of the winter," he said.
In New Jersey right now, the average for regular gasoline is just over $1.90. Kloza cautions the upswing will likely start again next February.
"The elements that conspire to send prices higher every spring are going to be back again next spring," he said. "The other side of that is the Ferris Wheel moves higher, and you are going to see prices, wherever we bottom out at, you'll see prices 75 cents to $1 higher next spring."
But according to Kloza, the rise will not be dramatic, barring any unforeseen circumstances.
Joe Cutter is the afternoon news anchor at New Jersey 101.5.