
According to the EIA, pump prices for the summer driving season (April through September) are expected to average $2.45 a gallon, compared with $3.59 a gallon in the same period last year. That calculates to year-over-year savings of $700 per household, and the lowest spending on motor fuel in the past 11 years.
The EIA is forecasting an average per barrel price for West Texas Intermediate (WTI) crude $52.48 in 2015, down from an average of $93.26 in 2014. The 2015 price for a barrel of Brent crude is now estimated at $59.32, down from $99 a barrel in 2014. For 2016 the EIA forecasts the WTI price at $70 a barrel and the Brent price at $75.03 per barrel.
U.S. production is forecast to fall from 9.37 million barrels of crude oil per day in April and May to 9.33 million barrels a day in June. The EIA expects production to bottom out at 9.04 million barrels a day in September, before climbing in the final three months of this year. Production in 2016 bounces around from 9.17 million barrels a day in January to 9.68 million barrels a day in December.
ALSO READ: The Happiest (and Most Miserable) Cities in America
The potential lifting of sanctions against Iran could cut the baseline projection for crude oil prices by $5 to $15 a barrel below the levels in the EIA’s latest forecast. Iran is thought to have some 30 million barrels of crude in storage and could ramp up production by a minimum of 700,000 barrels a day by the end of 2016.
For oil producers, Iran’s return to the market could not come at a worse time. The EIA projects global inventory growth will drop from a million barrels a day in 2015 to just 100,000 barrels a day in 2016. The agency concludes that Iran could add half a million barrels a day to the global supply, putting more downward pressure on pricing.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.