And if oil prices stay low, that would depress new production, which could eventually push prices higher. “Drivers should be very happy because all prognosticators overestimated what they would be paying,” said Tom Kloza, global head of energy analysis for the Oil Price Information Service. There was strong American consumption growth in 2015 and 2016, due in large part to the collapse of oil and gasoline prices. PhotoAmerican oil production, after a two-year slump, is soaring again, with the active drilling rig count more than doubling since May 2016. The Energy Department recently forecast an average regular gasoline retail price of $2.46 a gallon during this summer driving season, 23 cents higher than last summer.

Source: New York Times June 09, 2017 23:39 UTC