(Bloomberg) – Americans driving on their summer vacations will enjoy the cheapest gasoline in 12 years as prices stall just above $2 a gallon.
Drivers will pay 59 cents a gallon less at the pump this summer than a year ago and $1.55 below 2014, when oil prices peaked above $100 a barrel, the Energy Information Administration said Tuesday. Gasoline demand this summer will increase 1.4% from last year to a record.
"Low pump prices and continuing growth in employment contribute to more driving, resulting in a forecast of record-high gasoline demand this summer," EIA Administrator Adam Sieminski said in an e-mailed statement. "For all of 2016, the average household will save about $350 on gasoline purchases compared to last year."
Oil is still 19% below last year at this time
U.S. refiners are running at a record pace after a global glut of crude sent prices tumbling to a 13-year low in February. Oil is still 19% below last year at this time, even after rebounding on speculation that a meeting in Doha April 17 between producers including Saudi Arabia, Russia, Venezuela and Qatar will yield a deal to cap output.
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