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Gas prices projected to drop below $2 a gallon by end of 2015

August 14, 2015
Gas prices have been fluctuating in a 20-cent range towards $3 lately, but with a glut of cheap oil outpacing demand, industry analysts say that $2 gas could be widely available later this year. senior petroleum analyst Patrick DeHaan said regular gas could average less than $2 a gallon in as many as 20 states before Christmas, and predicted that the national average for regular would be $1.98 a gallon for the month of December.
The AAA travel services organization said in its monthly gas price report that $2 gas looks increasingly likely, especially in the Southeast and central portions of the country.
"The recent price declines are hopefully just a precursor of much bigger savings to come at the pump. We could see many parts of the country make another run toward $2 per gallon by the end of the year if everything keeps running smoothly," AAA said in its report.
The national average for a gallon of regular gas had fallen 22 days in a row for a total of 16 cents and stood at $2.62 as of July 30, according to the AAA Daily Fuel Gauge Report. That is down from a 2015 peak of $2.80 set on June 15.
AAA predicted that prices could fall 15 cents more this month as low global oil prices and an abundant domestic oil supply offset the typical seasonal high demand from motorists taking summer road trips. 
U.S. oil was trading at less than $45 at the end of July, down from more than $61 in late-June.
The national average for regular gas nearly fell to $2 in late-January. That changed when the price of oil started to rise and refineries conducted seasonal maintenance, reducing production, and later switched to more expensive blends of gasoline just as demand picked up during the spring. 
Now that oil prices have tumbled, AAA said pump prices could fall even more as demand for gas drops after the summer driving season. 
In addition, stations in many parts of the country can switch over to less expensive winter-blend gasoline on Sept. 15, AAA noted.