Oil and Gas Experts Predict Lower Fuel Prices for 2013

Market analysts in the oil and gas sector are predicting that current gasoline prices will keep on dropping throughout 2013.

Analysts from Deutsche Bank are also forecasting a drop in the oil price per barrel from around $100 to $70 by the end of the year. That significant fall will most likely push gasoline prices lower.

Many drivers welcome the potential for lower prices at the pump this year.

Prices got so high at their peak last year that the average bus driver spends $100 weekly to go to work. As such, many drivers are willing to accept any form of savings possible. Further, drivers were badly hit by the surge in gasoline prices last year.

The price of crude oil makes up around 70 percent of the price at the pump, says industry experts. The remaining 30 percent of the gasoline price depends on other factors, including distribution costs, refinery costs, state taxes and federal taxes.

Some motorists said that the high prices of gasoline affected their plans for the 2012 holidays. They were not able to travel for Christmas as prices at the pump were very expensive.

Because of that, a lot of drivers are hoping that the prediction of the experts is correct and that the holidays this year will be lighter on their pockets.

According to experts, the main reason for lower fuel prices this year will be higher production of global crude oil and weaker growth of the global economy.

By: Chris Termeer