Cheap crude prices may be foreshadowing incredibly cheap gas prices in Louisiana for the upcoming fall. A barrel of crude oil is sitting at just above 55 dollars today after a summer that saw very few interruptions with production. AAA Fuel Analyst Don Redman says he does not expect the price to change much over the next few months.
“We’re forecasting that the current price for crude will settle pretty close to where it is currently, which compared to this time last year could be as much as 15 dollars a barrel cheaper.”
Crude was 68 dollars a barrel this time last year. It’s the highest point in the last year was last October, when it peaked at 76 dollars a barrel.
Those crude prices are translating to a statewide average of 2.22 a gallon, nearly 40 cents a gallon lower than the same time last year. Redman says their projections indicate that price at the pump will continue to plummet as crude prices freeze.
“By the fall we are looking at a statewide average of 2.05 a gallon, and many service stations will be well under that.”
Redman says expect that to translate in fall to prices under 1.90 a gallon in certain areas of the state like Baton Rouge.
Those projections are based on the idea that production will remain uninterrupted in the Mideast and Gulf Coast. Redman says another exchange with Iran or a disturbance in the Gulf could send prices back to the usual levels.
“Between now and the next 30 days we are in a peak hurricane season, and all bets are off if a storm enters into the Gulf. That could really change our fortunes very quickly.”
