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Happy 'Tanksgiving'! Lowest Gas Prices Since 2009 To Come This Week

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Happy 'Tanksgiving'! Lowest Gas Prices Since 2009 To Come This Week

  • Gas prices are expected to dip below $2 per gallon on average in time for Thanksgiving.
  • Currently, the national average per gallon of gas is $2.072, but nearly 60 percent of all U.S. gas stations are selling gas for less than $2 per gallon.
  • Patrick DeHaan, GasBuddy's senior petroleum analyst, suggested that oil is expected to trade below the $40 per barrel mark for some time.
  • Holiday joy has come early to hundreds of millions of Americans in the form of cheap gas.

    According to a report by GasBuddy, the national average of gas at the pump will dip below $2 per gallon by Thanksgiving Day, giving consumers access to some of the cheapest gas prices since 2009. The report added that by the holiday, the average price at the pump will be 80 cents per gallon cheaper than it was a year ago, and $1.29 per gallon cheaper than 2013.

    Related Link: Goldman Is Selling Phillips 66, Buying These Refinery Stocks

    Thanks At The Tank

    While the national average is expected to dip below $2 per gallon by the end of the week, nearly 60 percent of all U.S. gas stations are already selling gas below $2 per gallon, encouraging travelers to hit the road even earlier than they have in the past.

    The low prices at the pump will result in consumers saving $1.5 billion, according to a GasBuddy survey.

    Many consumers remain skeptical that one of the busiest travel periods of the year will prompt gas stations to raise their prices. However, this is a "popular misconception" according to DeHaan. He added that the upcoming holiday "exemplifies the point," as November gas prices "have slid significantly lower."

    Looking Beyond Thanksgiving

    DeHaan said in an-email that oil prices "seem likely" to trade below the $40 per barrel mark for some time – marking some of the lowest prices for the commodity witnessed since the Great Recession.

    Finally, DeHaan added that three factors are contributing to low prices at the pump: 1) a seasonal decline in gasoline demand, 2) low and falling oil prices and 3) refinery maintenance season, which is quickly wrapping up.

    Image Credit: Public Domain

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