Gas prices have declined during April in the U.S. and they are expected to keep falling.
If at the beginning of this month a barrel of gas was around $125, prices have declined to around $120 per barrel. Prices are expected to decline more due to easing tensions with Iran and possible signs of a slowing global economy.
“If we don’t have any supply issues or refinery outages, we’ve seen the highs for the summer,” Stephen Schork, publisher of the industry newsletter the Schork Report, told CNN Money.
AAA declared that the average price of a gallon of gas is now $3.84, down from a yearly high of $3.95 in early April. But there is also bad news. Because some East Coast refineries have recently been forced to idle production for their impossibility to refine anything but light, sweet crude, an upward pressure could be put on gas prices. When it comes to oil nothing is certain and unexpected situations can arise at any moment.
“Unplanned refinery outages and a further improvement in the US economy could still create further upside risks to gasoline in May and June,” Merrill Lynch analysts wrote in a statement.