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Eh, we'll see. I wouldn't be surprised if we're at $3 by Thanksgiving
Gas may only dip a few cents when the Iranian oil first starts to flow again, but by September drivers could see big savings.
"Once we get past Labor Day, we should see gas falling by 10 to 15 cents a month," said Tom Kloza, chief oil analyst with the Oil Price Information Service. "By December a lot of places are going to see gasoline at $2 or less."
Iran hasn't been able to sell oil to the United States since 1995. Most major Western countries imposed sanctions within the last five years aimed at curbing Iran's nuclear program. Instead it's been selling to China, India, Turkey and other developing markets.
Crude oil and gasoline prices were both initially lower Tuesday on news of a deal between six major powers and Iran, though oil edged higher later.
"[Iran] will only add to the oil glut on the market and increase the selling pressure," wrote Naeem Aslam, chief market analyst at Ava Trade.
Related: Landmark deal reached on Iran nuclear program
The details of how sanctions will be lifted is not yet known. Some critics in Congress want to keep U.S. sanctions in place, but President Obama has vowed to veto any such efforts. And even if U.S. sanctions do stay in place for a while, the flow of Iranian oil to Europe will push down prices in global oil markets.
Related: Oil prices to dive again
Iran could add as much as 500,000 barrels of oil per day to worldwide markets by the end of this year, according to experts at a recent Credit Suisse conference on Iranian sanctions and oil. The International Energy Agency estimates Iran could add as much as 800,000 barrels a day months after sanctions are lifted. Another 30 million barrels of Iranian crude are estimated to be in storage and ready for sale, according to FACTS Global Energy, an industry consultancy.
Related: Oil prices volatile after Iran nuclear deal
The average gas price at U.S. stations is now $2.78 for a gallon of regular, according to AAA. Gas prices had fallen below $2 at most U.S. gas stations this past winter.
Even without Iranian oil, global production has been booming. North America, OPEC nations and record production from Russia and Iraq have been adding to a glut of oil on world markets. Economic problems in Europe and China also are curbing demand.
Kloza said Iran will add even more oil to the markets in 2016 as it improves its oil industry's infrastructure, which has suffered under the sanctions.
Related: At war with ISIS, Iraq is pumping more oil than ever
http://money.cnn.com/2015/07/14/news...eal/index.html
Eh, we'll see. I wouldn't be surprised if we're at $3 by Thanksgiving
nah, BigOil, like it has since the world price cratered 6,7 months ago, will keep US gas well above $2. Just paid $2.57 regular vs $1.75 a few months ago, and price of oil hasn't increased 45%.
btw, Saudi Arabia selling bonds, need money, to keep its spending on track.
Lol I'm paying $4.45
Filled the rental @$2.39 this morning.
Meh, we get most of our oil from domestic supply or from Canada/Mexico, tbh
Boutons is such a communist agitator. USA page less for our gas than most other countries.
then why is US gasoline so dependent on the WORLD price of oil?
Because our suppliers will sell to a hugger bidder or charge us more if the global price rises.
While i agree i will believe it when i see it ($2 gas which means 2.75 in CA)
OTOH remember when George BUll brought it down to under two the last month or two of his Depression Era attempt to keep the Repugs in office late 2008? Will the Demos similarly make sure it comes way down just for the vote? Then again they did not in 2012 or did they?
Oil is a global commodity drilled, produced, and refined by global companies, dumb .
Let me know when you want another cup of coffee.
"These do ents say point blank, look if you really want to boost your profits, you have to reduce refinery capacity," said Sen. Wyden. "This industry went to great lengths to limit refinery capacity, control markets, restrict supply to boost their profits, increase costs to consumers, and then argue we should relax environmental laws."
I'll serve them a cup at a time.
A year later, an official at Texaco, in a memo marked "highly confidential," called concerns about too much refinery capacty "the most critical factor" facing the refinery industry - resulting in "very poor refining financial results."
Gas was mid-high $3 in early 2012 and then dipped below $3 right before election....if I recallWhile i agree i will believe it when i see it ($2 gas which means 2.75 in CA
OTOH remember when George BUll brought it down to under two the last month or two of his Depression Era attempt to keep the Repugs in office late 2008? Will the Demos similarly make sure it comes way down just for the vote? Then again they did not in 2012 or did they?
And if you believe this drivel, I have a bridge I'll sell you.
$2.00...
No way.
True.
If we buy from Iran or not doesn't matter. It doesn't change the global supply and demand equation.
All depends on the Saudis.
Is this bridge on a flaglot
I see you don't know what a flag lot is. If you did, you wouldn't ask such a stupid question.
I'll bet you my ocean front property in Arizona I do derpderpderp.
Jeez you can't even keep up with your own zingers from yesterminute
Have you had that speech impediment for long?
that's my imitation of Cobraspeak
Cuck vs
vs mohel
Amirite
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