Gas prices hit new lows in time for the Thanksgiving holiday, at least compared to last year’s prices and Thanksgiving prices since 2010, according to the U.S. Energy Information Administration, or the EIA. The price, at average of $3.29, has gone up since last week, but is down 14 cents from 2012. The EIA reports that the Thanksgiving holiday is the highest traveled time of year in the U.S..
From November 27 through December 1 the AAA estimates that 38 million Americans travel over 50 miles from home by vehicle. The EIA’s November 2013 Short Term Energy Outlook says that the average price of regular gasoline will be around $3.24 per gallon in 2013′s fourth quarter and $3.50 on average for the average retail price, with a 2014 average price per gallon of $3.39.
The reason for low gasoline prices is likely from cost cuts on crude oil, with United States Brent (NYSE:BNO) crude oil ringing in at $4.66 per barrel from September 2 to near the end of November. The West Texas Intermediate crude oil showed a price drop of $14.81 per barrel during the same time — though it is less of a price driver than Brent.
The EIA’s November 2013 STEO estimates that Brent and West Texas Intermediate will show a continued decrease in price, falling to $105 and less then $94 per barrel each into December. By the end of 2014 the prices are expected to fall to $101 and $93 respectively.
Brent crude oil is considering lifting sanctions against Iran, leading to market reactions, according to The Motley Fool. Instability in Libya and Iraq concern experts in the field, especially with refineries working at top capacity at present. Many believe that these factors may put a floor beneath Brent oil. Still, this is good news for those that had to drive a ways to enjoy a turkey dinner with family, or who plan to travel distances to see family for Christmas.